One of the last developable sites in Melbourne's western logistics precinct has received planning approval for an $85 million three-stage development.
Melbourne based developer Time & Place will now undertake a 16.7 hectare, 75-lot industrial development on Maddox Road in Williamstown North.
The first two stages of the three-stage development has already been pre-sold according to the developer, tapping into a severe lack of supply and a growing need for industrial land lots for local businesses and industrial investors.
Land values grew by 21.4 per cent over the last financial year in Melbourne’s western industrial precinct, while the more established south-eastern precinct grew by a record 40 per cent in the same period.
The developer has also launched its second industrial development to market, The Junction located at Dohertys Road in Laverton North, featuring 55 lots sized between 1500 and 15,000sq metres.
“Supply to the industrial market has suffered in recent years due to the mass rezoning of land to residential,” Time & Place director Tim Price said.
“As a result, industrial projects have been squeezed out of the inner-western suburbs, with only approximately six years of supply remaining.”
The two projects will add a combined $155m to the developer’s portfolio, representing a calculated move to diversify into industrial and commercial projects, adding to its residential arm which includes joint ventures with its long-term partner Golden Age Group.
“We were initially targeting projects that would allow us to develop built-form factory projects but the space is extremely saturated.”
“After identifying a growing need for industrial land lots for businesses who want to build their own infrastructure specific to their needs, we have deliberately targeted the industrial land market instead.”
The developer’s other projects include Opera on St Kilda Road, Collins House and Victoria One in Melbourne CBD and No.1 Lachlan in Sydney.