The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
IndustrialMarisa WikramanayakeWed 10 Jul 24

E-Commerce Demand Drives $160m Melbourne Site Sale

PGIM and Elanor have acquired a logistics site in the Melbourne suburb of Mulgrave with Woolworths as an anchor tenant till 2026.

In one of Australia’s largest industrial property transactions this year, PGIM Real Estate and Elanor have joined forces to acquire a key industrial site.

The 19ha site at 522-530 Wellington Road, Mulgrave, 21km south-east of the Melbourne CBD, has been earmarked for a last-mile logistics estate.

The estate is expected to yield a 113,000sq m of gross lettable area.

An industry source told The Urban Developer they believed around $160 million was paid for the site.

Property magnate Harry Stamoulis has been reported as the previous owner of the site, picking it up for $90.75 million in 2017.

The site location is why the partners wanted it,  Elanor industrial and logistics co-head Myron Poobalasingam said.

“The site’s unrivalled access to major arterial roads makes it well positioned to capitalise on the much-talked about last mile logistics thematic with the site having access to approximately 35 per cent of Melbourne’s population within a 30-minute drive time catchment,” Poobalasingam said.

Supermarket giant Woolworths currently leases a 68,000sq m storage facility on the site. That ends on 2026 when it plans to close that facility down.

For its part, PGIM Real Estate’s made the acquisition under its strategy to acquire sites in the Asia Pacific region. It is the $305-billion  real estate investment and financing business for PGIM.

In turn, PGIM is a subsidiary of Prudential Financial Inc, with $1.98 trillion in global investment management.

Aerial view of the 19ha site in Mulgrave earmarked for a last mile logistics park.
▲ Aerial view of the 19ha site in Mulgrave earmarked for a last-mile logistics park.

PGIM Australia real estate head of transactions Greg Linklater said the continuing growth of e-commerce was underscoring the rising demand for last-mile logistics.

“The structural trends of e-commerce penetration and favourable long-term population growth outlook in Australia are making a strong investment case for the logistics sector,” Linklater said.

“We think this investment presents a compelling opportunity with strong rental growth prospects.”

PGIM Real Estate managing director Steve Bulloch said they had made six strategic investments so far this year in Australia with an emphasis on the logistics and living sectors.

It is also the third successful capital raise this year in partnership with Elanor’s institutional distribution partner Fidante. 

IndustrialMelbourneDeal
AUTHOR
Marisa Wikramanayake
The Urban Developer
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
The two towers, of 35 and 34 storeys, help cement the SA capital’s growing status as the best place in Australia for the…
LATEST
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/elanor-pgim-last-mile-logistics-melbourne-mulgrave-acquisition