VAUGHAN Constructions will complete a $183 million industrial park in Melbourne’s west after reaching an agreement with US-based Cabot Properties to deliver their first Australian development.
Two speculative buildings of 17,000 and 6,000 sqm. will be built on the last 4.7 hectares of land at Wyndham Industrial Estate in Truganina, with a total end value of circa $32 million.
Vaughan director Mark Byrne said the demand for stock in this location had the developer anticipating both buildings would be leased during the construction phase, if not very soon after completion.
Vaughan has contracted for industrial building works totalling more than $335 million over the last 12 months amid a surge in online retailing and the associated warehousing and distribution requirements. This will likely see a record 2.2 million sqm of industrial development delivered across the eastern seaboard in 2021, 80% of which will be delivered in Melbourne and Sydney.
Preliminary work on the new buildings is underway and completion is expected by the end of this year.
Cabot Properties chief investment officer Patrick Ryan flagged further investments down under.
“A growing country with a vibrant economy, Australia should see continued expansion of e-commerce adoption by consumers which has been a key driver of warehouse demand. We look forward to making future investments in the world-class cities of Melbourne and Sydney,” he said.
The firm‘s new project will join a number of other national and international brand developments at the 40 hectare Wyndham estate, including DHL over 25,000 sqm, Australia Post (30,000 sqm), HB Commerce (31,000 sqm), Mapletree (15,100 sqm) and Steeline Group.
Located near the corner of Palmers and Dohertys roads, the estate has also attracted users including The Country Road Group, Pacific Brands, Bidvest, Emergent Cold and Kubota.