Commercial builder and developer Vaughan Constructions will build two new industrial facilities worth $60 million for joint venture partners Mirvac and Blackstone, in a move marking the first speculative industrial buildings for the JV team.
The new 25-hectare Biodiversity Industrial Estate, located on Cooper Street in Epping, will include a 30,000sq m facility spanning a five-hectare site, and a 15,500sq m facility on a three-hectare site.
The estate has the potential to accommodate an additional 103,000sq m of warehousing in stage one.
Stage two, which is currently in the planning phase, would comprise 50 hectares with the potential for up to 250,000sq m of warehouse area, and would see the estate’s end value of approximately $375 million.
Vaughan Director Mark Byrne said the northern Melbourne market currently has an acute lack of quality industrial facilities, and that the “evolving industrial market was driven by e-commerce and a booming state economy”.
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JLL Head of Industrial and Logistics Tony Iuliano brokered the deal.
Iuilano said it’s likely there would be more speculative deals as demand for new and well-located industrial buildings increase and supply continues to diminish around the country.
“This is one of Victoria’s best industrial markets that we have seen in years with significant rises in land prices, rental growth, and unprecedented tenant demand,” Iuilano said.
Vaughan is also currently working on the $37 million speculative warehouse buildings for Frasers Property in Truganina in Melbourne’s west.
Construction of both buildings in the Epping estate is scheduled to commence early in the new year.