AUSTRALIA’S largest listed pure-play industrial fund, Centuria Industrial REIT (CIP) and its development partner, Cadence Property Group, have broken ground on a new multi-unit industrial facility within Melbourne’s north, where current vacancy rates are less than 0.5%.
Known as M80 Connect, the Campbellfield development will comprise 45,375 sqm of lettable area across five industrial units ranging between 3,200 sqm and 20,000 sqm and with 13.7-metre internal clearance, ESFR sprinklers, flexible docks, large heavy-duty hardstands with cantilevered and super awnings, and will accommodate semi-trailers and B-doubles.
The 7.92-hectare site is less than a kilometre from the Hume Highway and M80 Ring Road, and provides access to a population of more than 4.5 million people within a 60-minute drive time.
Jesse Curtis, CIP fund manager and Centuria’s head of industrial said, “The dual themes of expanding e-commerce and onshoring supply chains is driving demand for industrial space within Melbourne’s urban infill markets”.
“At present, supply cannot keep up with demand.”
Demand within the Melbourne industrial market has seen 57% of future supply in the 2023 calendar year already pre-committed.
Record low vacancy and the lack of available stock increased super prime rents in Melbourne’s north by 35.3% year-on-year for Q4 2022, according to CBRE.
M80 Connect is the second project between CIP and Cadence, following the Southside Industrial Estate on the other side of town.
“Melbourne’s north is a key focus for us and a market that is crying out for quality industrial and logistics accommodation in well-connected locations,” Charlie Buxton, Cadence Property Group managing director said.
CIP and Cadence have appointed industrial design and construct specialists Texco Construction to build the facility.
Daniel Eramo and Joe Brzezek from CBRE together with Mario Moscon and Anthony Cannizzaro from JLL are the appointed leasing agents.
