First Stage of IMF’s $1.1bn Vic Industrial Scheme Approved

The first stage of a $1.1-billion industrial development in Melbourne’s south-east has been waved ahead.

IFM Investors has won planning approval for the initial stage of the 62.3ha estate at 265 Dandenong Hastings Road, Lyndhurst about 45km from the city centre.

The approval granted by the City of Greater Dandenong Council comes just six months after plans were filed.

The development will ultimately deliver 20 warehouses ranging from 7000sq m to more than 80,000sq m across three stages.

Total built form is expected to reach about 281,000sq m, including associated office space.

Construction is forecast to span five years and generate 3090 full-time equivalent jobs, including 1030 direct and 2060 indirect roles.

The project is expected to contribute more than $490 million in economic value during the construction phase.

Works are scheduled to begin this year.

Once operational, the estate is expected to support 2370 full-time equivalent jobs a year, including 1250 direct roles.

Operational output is expected to deliver $433.8 million in economic value each year.

The project is targeting a 5-Star Green Star Buildings rating and will incorporate solar PV systems, rainwater harvesting and electric vehicle charging infrastructure.

▲ The precinct will ultimately comprise 20 warehouses for more than 2.8ha of undercover space.

Recycled materials will be used where possible, with the design aiming to reduce embodied carbon by about 10 per cent.

IFM Investors project director Matthew Cox said projects of this scale were rare in Victoria.

“This is the largest industrial project we’ve undertaken in recent times,” he said.

“The potential positive impact it will have on Victoria’s industrial market will be immense ... we’ve already had strong interest from a pre-leasing perspective.”

Cox said the development would deliver critical industrial capacity while supporting jobs, economic growth and long-term returns for pension fund investors.

IFM Investors is a global investment management firm owned by Australian pension funds with about $264.4 billion of assets under management. It has 17 offices across Australia, Europe, North America and Asia.

IFM Investors acquired ISPT in late 2024, bringing the two Australian industry‑superannuation‑owned investment businesses together under one platform.