An approval and an acquisition have propelled partners MaxCap Group and Troon Group’s Melbourne development pipeline to $400 million.
The partners paid a reported $70 million for a substantial parcel of industrial properties at Cheltenham and have won planning approval for an industrial estate on its Clayton South site.
The 5.5ha Cheltenham asset with frontage to Bay and Wangara roads, holds commercial 2 zoning with income across triple net leases and staggered lease profiles.
The partners, however, intend to carve up the site and progressively redevelop it.
The sale was brokered by David Aiello from CBRE and Daniel Telling from Colliers.
MaxCap head of direct investment Simon Hulett said the acquisition was its fifth joint venture with Troon and that its size, flexible zoning and established location lent the site to “higher and better uses via retail, childcare, warehousing, and self storage”.
“It is ... close to the proposed new Suburban Rail Loop station, proximity to major road infrastructure, Westfield Southland Shopping Centre and some of Melbourne’s most established residential suburbs such as Brighton and Sandringham,” Hulett said.
“We see tremendous scope to create value on the site and we expect the redevelopment to deliver around $200 million of product into the precinct.”
Meanwhile, the City of Kingston has approved the partners’ nearby Clayton Industrial Business Park development comprising 60,000sq m prime-grade industrial estate across nine warehouses.
Construction on the site is planned to begin the fourth quarter of this year ahead of completion in late 2026.
The partners picked up the 10ha site, the former Clayton South tip, about 10km south of the Melbourne CBD, in June of last year for a reported $24.5 million.
