Goodman Group has added an under-way logistics park north of the Melbourne city centre as its appetite for industrial stays keen.
Now in its portfolio, acquired for what sources believe was around $240 million, is the O’Herns Logistics Park at Epping, 20km from the CBD.
The industrial estate at 25 Vearings Road comprises 118ha of land and is permit-ready for up to 700,000sq m of warehousing. That project has an estimated end value of $350 million.
The lettable area could expand further if pre-commitments are secured from occupiers such as data centres or logistics providers looking for highrise buildings.
Earthworks have begun at the 259ha site and development of the first stage of the business park is under way. It is expected to complete this financial year.
The site was sold by Sandhurst Retail and Logistics.
It neighbours a number of Melbourne’s key arterials including the Hume Freeway via the new O’Herns Road diamond interchange, Tullamarine Freeway, Western Ring Road and City Link.
The property was rezoned from Rural Conservation Zone to Industrial Zone in October of 2020 after a complex planning process.
According to the original development documents the site “provides a great opportunity to implement a new sustainable approach to Logistics Business Parks development”.
“As companies continue to adapt and evolve following the e-commerce boom, large-scale and well-connected logistics centres that provide significant ESG benefits to its occupiers will play an important role in the shifting commercial landscape.”
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The industrial estate aims to be one of Melbourne’s most sustainable business parks, with buildings required to meet a 5-Star Green Star rating, including solar power, LED lighting and rainwater harvesting facilities.
A significant conservation area spanning 127ha also forms part of the masterplan.
LAWD’s Peter Sagar, Paul Callanan and Henry Sayers alongside Colliers’ Daniel Telling, Sean Thomson, Nick O’Brien and Gavin Bishop handled the deal.
This acquisition follows Goodman’s purchase at Murarrie in Brisbane, of Dyno Nobel’s 58ha Gibson Island site for $194 million.
