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As seen in the Source link, written by realestatesource.com.au on 2019-11-13 07:49:29

Stockland has teamed with Mt Atkinson Holdings – led by a consortium of Melbourne businessmen – to create a $2 billion commercial park, set to be the largest industrial project in that city’s west.

It is hoped the 260 hectare site, 25 kilometres from the CBD, in Truganina, will also become the city’s largest and most innovative future logistics project.

Melbourne’s western suburb industrial market is unique – being amongst
the cheapest in the country in which to own or rent – but also, arguably, the
most effectively located, between Melbourne Port (35 kilometres away),
Melbourne Airport (27 kilometres) and the city’s road and rail infrastructure.

As Avalon Airport near Geelong increases its freight dealings, suburbs
like Truganina, 43 kilometres from it, are expected to become even more attractive
to users in the distribution sector.

An aerial image showing the Melbourne Business Park (shaded, orange) in relation to other Mt Atkinson blocks, the Western Freeway and Port of Melbourne.

The Melbourne Business Park project

The development consortium today launched the first stage of the commercial
project, which will cover 95 hectares.

That said, it has already sold 11 lots.

To be branded Melbourne Business Park, the estate will sit adjacent to Stockland’s master-planned Mt Atkinson residential village, which is taking shape.

Construction of the first industrial buildings are scheduled to start around
this time next year.

Mt Atkinson Holdings director Anthony Caligiuri said he hopes the Stockland agreement will progress the Victorian Planning Authority vision to establish the suburb as a self-sustaining yet well-connected community.

Mr Caligiuri controls Mt Atkinson Holdings with other Melbourne
businessman and property owners David Scalzo and Eli Goldfinger.

Half of the Mt Atkinson Holdings Truganina block is mooted for housing.

Yesterday, we reported that Charter Hall and ID_Land sold a site permit-ready for a shopping centre in the suburb – banking $9.6 million.

Charter Hall’s Prime Industrial Fund is also developing the Midwest industrial estate on a 60 hectare Truganina plot – one of many institutions building commercial stock in the area.

Melbourne Business Park and the Mt Atkinson Precinct Structure Plan

Melbourne Business Park is proposed for land bound by the planning rules
in the Mt Atkinson Precinct Structure Plan.

The precinct will include schools, a train station, bus services,
community facilities, a new town centre as well employment precincts.

Stockland Commercial Property chief executive officer Louise Mason expects
its industrial estate to capitalise on Melbourne’s growing western suburb population.

“As
announced at our 1Q19 results, the Workplace and Logistics sector continues to
drive significant growth for the Commercial Property portfolio,” Ms Mason said.

“Our
pipeline now totals over $2.5 billion, and continues to perform strongly as we
up-weight our exposure to this asset class through development and strategic
acquisitions which reflect forecast total returns above our investment hurdle
rates”.

Melbourne’s
western growth corridor, where Truganina is located, has experienced substantial
growth over the last decade, with the total population in the Melton municipality
set to reach 254,095 by 2029, according to Victoria in Future 2019 planning
document.

The developers have already started selling down the project

“The $190
million first stage of Melbourne Business Park has already seen Stockland
obtain strong interest with Stockland accepting offers on 11 lots,” the
consortium said.

“A further
five industrial lots ranging in size from 1.2 hectares to 3.2 hectares will be
released today targeting owner-occupiers and investors”.

Consolidated
super-lots are also available.

…but they intend to hold onto the majority of subdivided lots as joint venture partners

It is currently intended that subsequent stages will be developed by Stockland and Mt Atkinson Holdings with a view that the majority of the subdivided lots will be held by the joint venture partners, the consortium said.

Stockland general manager, Workplace and Logistics, Tony D’Addona added that the business precinct “will provide significant owner occupier and pre-commitment opportunities for local, national and international businesses.”

“We are expecting strong interest from growth businesses particularly eCommerce and third party logistics industries who are looking to upscale or establish their industrial footprint in Melbourne”.

On Hopkins Road, the business park is
two kilometres off the Western Highway diamond interchange.

“The area is flagged for significant
freight and logistics infrastructure investment and is in close proximity to
the planned future Outer Metropolitan Ring Road, and Western Interstate Freight
Terminal,” Mr D’Addona added.

“The
project is also situated next door to Mt. Atkinson residential community, which
has received a strong response from home buyers with 750  sales to date,
and will see up to 5000 families call the community home upon completion.

“Most importantly, Melbourne Business Park and surrounding employment precincts will help deliver close to 19,000 local jobs for the Mt. Atkinson community, contributing to the state’s significant Western Industrial Node and the Hopkins Road Business Precinct.

“Owners and tenants at Melbourne
Business Park are expected to also enjoy new world-class facilities as the Mt.
Atkinson precinct unfolds, with future rail, a retail town centre, schools,
childcare, and vast public open spaces all on their doorstep.”

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