Vaughan Constructions will build two new industrial facilities for joint venture partners Mirvac and Blackstone as it launches its new 25-hectare Biodiversity Industrial Estate in Epping.
Vaughan director, Mark Byrne, said the circa $60 million buildings – the first speculative industrial buildings for the Mirvac/Blackstone JV – include a 30,000 square metre facility, capable of being split into two tenancies, on a five-hectare site, and a 15,500 square metre facility on a three-hectare site.
“We are extremely pleased to be able to announce the Mirvac/Blackstone deals in launching a new estate to a northern Melbourne market which currently has an acute lack of quality industrial facilities especially so close to the Hume Freeway.
“Mirvac and Blackstone are confident about finding tenants as they embark on what is a relatively new way of doing things in an evolving industrial market driven by e-commerce and a booming state economy,” said Byrne.
He said construction would commence on both buildings early in the new year.
The biodiversity estate has the potential to accommodate a further 103,000 square metres of warehousing in Stage 1, while Stage 2, comprising 50 hectares with the potential of up to 250,000 square metres of warehouse area, is currently in the planning phase giving the estate an end value of $375 million.
JLL head of industrial and logistics for Australia, Tony Iuliano, who brokered the deal, said it was likely there would be more speculative deals of this nature as demand for new, efficient, and well-located industrial buildings grew and supply continued to diminish around the country.
“This is one of Victoria’s best industrial markets that we have seen in years with significant rises in land prices, rental growth, and unprecedented tenant demand.
“We are also seeing $20 billion of unsatisfied capital both offshore and onshore looking to deploy into the Australian industrial and logistics sector,” said Iuliano.
The deal follows a similar speculative, circa $37 million build that Vaughan is currently undertaking for Frasers Property at Maker Place, Truganina in Melbourne’s west.
The deal includes two office and warehouse buildings totalling 30,885 square metres on a 4.98-hectare site.
Byrne said both the latest deal and the Truganina deal vindicated Vaughan Construction’s strategy of purchasing and developing industrial parcels with easy access to Melbourne’s freeway network.