Victoria Unlocks 5800ha for Industrial Development

A plan to unlock more than 5800ha of industrial land across Victoria has been announced as two heavyweight players double down on their investment in the sector.

The Victorian Government has released its 10-year plan to unlock industrial land across the state, targeting $9.5 billion in investment and the creation of 100,000 jobs by 2035.

The plan focuses on Melbourne’s northern and western growth corridors as well as regional employment precincts in Ballarat, Bendigo, Parwan and Avalon.

Key metropolitan sites include Merrifield North, Derrimut Fields, Altona North and Hastings.

Planning minister Sonia Kilkenny said the plan established a timeline for land release and rezoning, supported by faster planning approvals, co-ordinated infrastructure delivery and streamlined processes.

Protection measures for valuable industrial land through zoning controls would enable freight, logistics and manufacturing industries to expand.

The plan aims to provide business confidence while supporting manufacturing, construction and logistics sectors through reduced delays.

The Government has introduced an Industrial Land Gateway Service to accelerate rezoning, allowing unzoned precinct sections to proceed when planning and infrastructure requirements are satisfied.

This would fast-track shovel-ready industrial land by reducing regulatory processes.

Regional sites would benefit from a $10-million Trunk Infrastructure Fund, connecting land to power, water and road networks to enable immediate business operations.

Monash University professor Carl Grodach said the plan would encourage e-commerce, logistics and freight movement while creating new land supply for the growing artificial intelligence economy and data centre requirements.

▲ Kilkenny said the plan would unlock “the land we need for the industries that power our economy”.

He said the strategy would also help consumers receive overseas orders more quickly.

“It is likely to assist e-commerce giants like Amazon over smaller manufacturers and local producers that require smaller spaces closer to the centre of the city,” Grodach said, but raised concerns about environmental and logistical challenges stemming from the approach.

Grodach said the new plan might also create challenges for net zero cities and circular economies by extending industrial sprawl, with no plan for older industrial sites.

“This risks generating higher truck volumes over longer distances and maintaining dependence on global imports,” Grodach said.

“The plan continues to overlook the need for central industrial space manufacturing clusters for local production and reduced emissions.”

The state last week announced broader infrastructure investment across Melbourne’s western growth corridor, commencing a $767-million road program including the Ballan Road Intersection Upgrade at Wyndham Vale, the Point Cook Road and Central Avenue Intersection Upgrade at Altona Meadows, and the Ison Road Project at Werribee.

Avalon Airport also opened an $8-million freight processing facility capable of handling 100,000 tonnes of cargo annually, providing infrastructure to support the industrial precincts identified in the 10-year plan.

▲ Frasers' Canterbury Road site is tenanted by Puma.

Frasers, Morgan Stanley expand partnership

Meanwhile, Frasers Property has this week expanded its Australian capital partnership with Morgan Stanley.

Their investment vehicle has taken on nine industrial assets from Frasers Property Industrial totalling 163,000 square metres. The portfolio is valued at $500 million.

Eight of the assets—including two in Victoria, at 56 Canterbury Road and 1-3 Beyer Road at Braeside as well as nearby 2-8 Beyer Road—have been redeveloped and are fully leased. 

The ninth, a 20ha Queensland site, has the potential to accommodate a further 140,000sq m of gross floor area once it is fully developed.