Development site in Craigieburn, Victoria acquired for $87 million

12 July 2023

 

Frasers Property Industrial has acquired a 41-hectare premier industrial land parcel in Melbourne’s north from Cadence Property Group and private vendor Linkage Property for a total of AUD $87 million, to create a new masterplanned estate in the undersupplied region. 

 

Located at 50-70 Kinloch Court, Craigieburn, the site, with a net developable area of more than 33-hectares, represents one of the last remaining major industrial land holdings in the Craigieburn North Employment Area Precinct, which is also one of Melbourne’s strongest rental growth corridors. 

 

The deal aligns with Frasers Property Industrial’s strategic objective to grow its development pipeline in tightly-held areas across the Eastern seaboard, adding to the company’s 2.2 million square metres  strategic land bank in Australia. It sits north of its 4Ten Epping Premium Estate, which has experienced strong leasing demand.  

 

Cadence Property Group and Frasers Property Industrial will also deliver a suite of infrastructure to the Craigieburn North Employment Area Precinct.   

 

Andrew Hanna, General Manager – Victoria, at Frasers Property Industrial comments, “We are excited to acquire another prime industrial development site in this fast-growing Melbourne region. 

 

“The acquisition aligns with our aim to boost our development pipeline in well-connected corridors close to transport and worker populations, which this strategic location enables. We will build on the momentum we have created at our nearby 4Ten Epping estate, which has received significant demand from diverse customers. Melbourne’s north is continuing to undergo significant transformation, with substantial investment in local infrastructure including the North-East Link and inland rail projects set to further increase accessibility. 

 

“We look forward to progressing our plans for this site and bringing it to market.”

 

Charlie Buxton, Chief Executive Officer at Cadence Property Group comments, “We are thrilled to be working alongside Frasers Property Industrial to deliver the infrastructure in the Craigieburn North Employment Area Precinct and the mutually beneficial transaction is a big vote of confidence for the area. We strategically acquired around 100 hectares in the Precinct over the last two years and this deal is reflective of our approach of staying flexible with how we deliver and monetise our holdings over time. Together with this transaction, we are continuing to develop our adjoining 65-hectare, $650 million industrial estate, Kinetic Business Park.”

 

“We retain extremely high confidence in the Precinct and the industrial sector more broadly. The Precinct is very well located along the Hume Highway, zoned and readily developable and allows us to immediately bring much needed high-quality supply to market quickly.”

 

Daniel Eramo, Director at CBRE comments, “With a chronically low current vacancy rate of 0.85% in Melbourne’s North, the acquisition presents Frasers Property Industrial with a significant opportunity to capitalise on increasing occupier demand through the development of super-prime grade facilities within a fast-growing key logistics hub. In the 2022 calendar year, Melbourne’s North experienced its highest level of lease absorption on record at 452,000 square metres and we are on track to improve on that in 2023. 

 

“More occupiers and investors are recognising the operational benefits of the Craigieburn North Employment Area Precinct and its unrivalled access through Australia’s Eastern Seaboard. This, coupled with major infrastructure projects including the NorthEast Link, Somerton Intermodal and the Beveridge Intermodal Freight Terminal, are further cementing Craigieburn as a long-term strategic solution for industrial facilities in Victoria.”

 

This transaction was facilitated by CBRE and Savills.

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