Located in Melbourne’s north at 50-70 Kinloch Court, Craigieburn, KINLOCH consists of an amalgamated land holding totalling 40.85ha of gross land, with a net developable area of over 31ha.
Exclusively appointed agents, CBRE and Savills, are presenting the property for sale as a rare opportunity to develop a core industrial estate with the ability to deliver over 170,000sqm of gross floor area, or alternatively opt for a premium land subdivision. Given the rarity of development ready opportunities in the market, the optionality and scale are expected to generate strong interest from both institutional and private developers.
While other major real estate sectors, particularly commercial office, have been under substantial pressure from high vacancy rates and decreasing values, industrial has so far weathered the current rate rise environment relatively well, bolstered by record low vacancy rates, structural supply constraints, and record rental growth.
CBRE’s Q1 2023 industrial research estimated Melbourne’s overall vacancy at a record low rate of 1.1% with Melbourne’s north recording a vacancy rate of 0.5%. As a result, super prime northern industrial rents recorded year-on-year rental growth of 31.4%, significantly outperforming all other Melbourne sub-markets.
Located within the existing Craigieburn North Employment Area Precinct Structure Plan, an integrated commercial and industrial precinct which runs parallel to the Hume Freeway, KINLOCH is one of the last remaining major Industrial land holdings in the precinct, which has already mostly been consolidated by other major developers.
In addition to the 40.85ha on sale, Cadence is developing out a further 65ha of land owned within the precinct, known as Kinetic Business Park, alongside other major industrial developers including LOGOS and Goodman Group who have both kicked off their respective estates.
Goodman unveiled its Amaroo Industrial Estate last year with the completion of Amazon’s 15,000sqm middle-mile facility. As the first of its kind in Australia, the facility has already created a buzz in the precinct with 24/7 operational hours and over 200 on-site employees. Separately, LOGOS have also commenced Stage 1 construction works at its 90ha Craigieburn Logistics Estate.
Daniel Eramo, Director at CBRE, says the calibre of developers and tenants already committing to the area is a clear indication of the industry’s confidence not only in the precinct, but the north in its entirety.
“International organisations like Amazon have already identified the precinct as ideally located along the Hume Freeway with an ability to be activated quickly with minimal delays,” said Eramo.
“With several major developers consolidating positions within the Craigieburn precinct we expect it to advance very quickly from here.”
Since 2015, the gross annual take-up of industrial space in the north has been increasing at a rapid rate of around 40% p.a. with recent CBRE data showing 452,184sqm was taken up in 2022.
“We started making material investments into Melbourne’s north around 2 years ago after identifying its growing importance in Melbourne’s industrial market,” said Charlie Buxton, Managing Director of Cadence Property Group.
“The Craigieburn precinct in particular is extremely well located along the Hume, zoned and readily developable allowing us to bring much needed supply onto the market in a timely manner.
“We also believe that the substantial investment in infrastructure in the north, particularly in the North-East Link and the various inland rail projects, will dramatically increase the regions accessibility and appeal to industrial occupiers.”
Due for completion in 2027, the Victorian Government’s North-East Link is already well advanced and is set to provide the missing link in Victoria’s orbital road network. Linking the Western Ring Road with the Eastern Freeway, this upgrade is set to significantly improve the north’s access to greater Melbourne.
Furthermore, news has emerged last month that the National Intermodal Corporation has recently exercised their option to acquire land in Beveridge, which has been deemed appropriate to support the future Beveridge Intermodal Freight Terminal (BIFT). Upon completion, the BIFT is expected to accommodate 1,800 metre freight trains and have up to 2 million container movements per annum.
Further to the clear appeal of the area, KINLOCH is being offered with key infrastructure and services delivered to the doorstep which Cadence will be constructing as part of its greater development of the area.
Daniel Eramo and Chris O’Brien from CBRE and Anthony Cannizzaro and Michael Wall from Savills are running an expression of interest campaign for KINLOCH closing on Friday 5 May.