He said rents were approaching $100 per square metre in the west, “numbers I have never seen before”. He said demand for warehouse space was being driven by companies wanting to hold a lot more inventory “as a result of the uncertainty around supply chains”.
While the Cobblebank site is a little further away from the Melbourne city centre than other areas of industrial development in the west, Mr Hanna said Frasers had been able to secure it at a “reasonable discount to prices being paid” for industrial land in Truganina and Tarneit.
“It’s a little further out, but its proximity to travel nodes [including the Western Freeway] means travel times are similar,” he said.
Situated 33 kilometres from the Melbourne CBD and the Port of Melbourne, the Cobblebank site is expected to accommodate more than 100,000 square metres of large-format warehousing once completed. It adds to FPI’s substantial industrial land bank, which at the end of March stood at 290 hectares.
The sale of the Cobblebank site was brokered by Industry Property Group agents Andrew Macqueen and Cameron Hunter.
The acquisition bolsters FPI’s presence in Melbourne’s western suburbs, which includes its 42.3-hectare Canvas West estate at 917 Boundary Road in Tarneit, which has attracted tenants such as Shaw Fabrics, Silk Contract Logistics and VidaXL
Outside of Melbourne, FPI is also benefiting from strong occupier demand.
Its $500 million Yatala Central estate on the Gold Coast hit 100 per cent occupancy last month, after striking a deal with Australian flooring logistics supplier GMK Logistics to lease a 25,580 square metre distribution facility on the last parcel of available land.
Troy Whalan, general manager for FPI in Queensland, said the fully developed and occupied status of the estate was driven by demand for high-quality developments that prioritise health, wellbeing and sustainability.
Frasers Cobblebank Estate will target a minimum 5-Star Green Star rating for all facilities. Sustainability features to be incorporated in the development include rooftop solar panels and water efficient design that captures and reuses rainwater.
Mr Hanna said his team was working through the master plan for the estate, which would comprise a mix of pre-committed facilities and speculative development.
“With a thriving local economy, we are confident that the estate at Cobblebank will attract a host of blue-chip customers seeking to grow their presence in the region,” he said.