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Frasers Property Industrial and ESR acquire land for $900 million Melbourne industrial estate

The latest deal for the two companies allows them to target viable logistics land near the Dandenong South Inland Port that is set to be launched

Industrial real estate brand Frasers Property Industrial and construction company ESR Australia have partnered in a 50:50 joint venture to acquire a 64.4ha parcel of land from Salta Properties in Melbourne’s south east which will be developed into a premium industrial estate with a total end value of $900 million.

Located at 635 Hall Road, Cranbourne, the joint venture will develop the industrial facilities on the majority of the estate, with part of the land earmarked for small lot sub-divisions for sale. Works on-site are anticipated to start in late 2024, with the first buildings to be completed in 2026.

Building on their successful previous partnerships across industrial and commercial developments, this acquisition sees two of Australia’s largest industrial organisations continue to grow their presence in Victoria.

With a combined track record of delivering over 320ha of leading industrial estates in Melbourne’s south east, Frasers Property Industrial says the joint venture partners bring unique expertise in the delivery of next-generation facilities for the site.

The site is situated in an established industrial sub-market of Melbourne, making it an attractive location for customers in e-commerce, manufacturing, logistics and distribution.

Ian Barter (left) and Phil Pearce (right). Image: Frasers Property Industrial

Frasers Property Industrial Australia managing director Ian Barter says the joint venture played to both Frasers Property Industrial’s and ESR Australia’s combined expertise in delivering industry leading development outcomes underpinned by sustainability.

“This acquisition marks a significant milestone for Frasers Property Industrial as we position ourselves to meet the evolving demands of the market. This development not only integrates premium logistics and warehouse solutions but also prioritises sustainability and access to amenities, aiming to enhance operational efficiency and wellbeing for our future customers,” Barter says.

“The deal aligns with Frasers Property Industrial’s strategic objective to expand our development pipeline in key areas across Victoria, adding to our 2.2 million sqm high-quality land bank in Australia.”

ESR Australia CEO Phil Pearce says the partnership with Frasers Property Industrial will build on the highly successful working framework devised when delivering previous market leading developments together, along with drawing from learnings from the development and management of each company’s respective portfolios.

“The 50:50 structure of the joint venture with Frasers Property Industrial provides both parties access to the highly desirable Hall Road location and enables the combined might of the partnership to deliver much needed prime logistics facilities to Melbourne’s severely supply constrained south east market,” Pearce says.

“We look forward to continuing the success ESR has experienced at our nearby ESR Greenlink, where we have attracted global e-commerce and logistics providers as long-term customers seeking to leverage the premium facilities in the strategic south east locations to enhance their own operations, which provides a great deal of confidence for this development.”

Salta Properties managing director Sam Tarascio says the company is pleased to finalise the transaction to the joint venture, with Salta Properties retaining 60ha of land to the north of the site for future development.

“This emphasises our commitment to ongoing investment and this site holds immense potential, allowing us to cater to the diverse and evolving needs of our valued customers,” Tarascio says.

“It also aligns with the development in Melbourne’s south east, especially with the upcoming launch of the Dandenong South Inland Port.”

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