Frasers Property Australia’s $46 million facility currently under construction in Melbourne’s industrial-heavy west has secured a 20-year lease.
Paper giant Visy Australia committed to the double decade lease, at 27 Doriemus Drive in West Park Industrial Estate Truganina, for a purpose built 42,770sq m manufacturing and distribution centre.
The Truganina area is well known to industrial heavy hitters. Logistics specialist Logos snapped up a 27.5 hectare Palmers Road site this month for $28 million, with grand plans for a $250 million logistics estate.
Charter Hall fund coughed up $55.35 million for a 58-hectare Doherty’s Road property, ultimately outbidding Dexus and Frasers Property for the site, with plans to develop a $330 million industrial park.
Frasers commercial and industrial division general manager Anthony Maugeri said the 20-year lease was a positive sign for the sector.
“This recent commitment shows renewed strength in Melbourne’s manufacturing market which we expect to continue well into 2019,” Maugeri said.
Corelogic's commercial property market analyst Eliza Owen's says industrial real estate is currently the most common type of commercial transaction in Australia.
At the end of April up to 9,077 projects were under construction. Of that number approximately seven per cent were industrial builds.
The $46 million facility, which is currently under works by Frasers Property construction, will offer 1025sq m of office space and 124 car spaces.
The Doriemus Drive asset, sitting on 7.843 hectares of land, will be held in Frasers' investment property portfolio.
“An end-to-end solution will be provided to ensure the design and layout meets Visy Australia’s requirements to provide a highly sustainable and energy efficient manufacturing and distribution facility,” Maugeri said.
The industrial park has proximity to the Western Ring Road, Deer Park Bypass and Melbourne's ports and airport.
The construction will be completed over two stages, with stage one expected to be completed by September, and stage two anticipated for a December completion this year.
The transaction was brokered by Ben Fahey from Frasers Property, and Cushman Wakefield’s Stuart Duncan from Visy and Michael Green.