A Charter Hall fund has paid $55.35 million for a 58-hectare site in Melbourne’s south-west, with plans to develop a $330 million industrial park.
The fund manager acquired the industrial site, located at 442-540 Doherty’s Road, Truganina from private investors. The asset sits nearby to the existing Drystone estate which Charter Hall acquired in late-2011 and later developed.
The acquisition was made through a competitive bidding process with Charter Hall beating out Dexus and Frasers Property for the site.
The western industrial suburbs accounted for more than half of the annual take-up of industrial land in Melbourne in 2017.
Charter Hall’s head of industrial development Andrew Simons said that the asset, along with the recent 6.5-hectare Eastern Creek acquisition in Sydney, will extend Charter Hall’s development pipeline to $2 billion.
“The Property will provide CPIF with access and exposure to a premier industrial precinct within the Melbourne market that is within close proximity to the largest port in Australia,” Simmons said.
The property is located within close proximity to major infrastructure and roads, including the Western Freeway connecting to the Western Ring Road & the M1/M80 diamond interchange.
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The Truganina site was marketed by JLL agent Matt Ellis who said the land parcel was “hotly-contested”.
“Charter Hall prevailed and will benefit from demand from large industrial and logistics occupiers currently struggling with site options in Melbourne’s west.”
The Group last year announced a $120 million industrial project at Leppington in Sydney’s western growth corridor with joint venture partner Commercial Industrial Property. The leasehold acquisition will host about 80,000 square metres of gross lettable industrial space delivered over five years.
The Truganina site will be held by Charter Hall’s $2.8 billion Prime Industrial Fund, the fund currently manages 52 assets with an average building age of less than 10 years across the portfolio.