- This will be the companys' fourth joint venture
- The site required significant due diligence as it was previously a landfill site
- The third joint venture was recently and successfully divested for over $50M
MaxCap Group and joint venture partner, Troon Group, have acquired an industrial land holding at 618 Clayton Road, Clayton South, in inner Melbourne.
The fourth joint venture comes weeks after the pair successfully divested their third joint venture, Chirnside Lifestyle Centre, for over $50 million.
The acquisition is a vacant site, with the JV intending to deliver circa 60,000 square metres of prime industrial warehousing. The site is a regularly shaped 10 hectare parcel of land, less than 20 kilometres from the Melbourne CBD and is zoned industrial one.
“We remain bullish about investing in zoned industrial land parcels in prime infill locations across Australia’s east coast which we have been doing for five years now,” said Simon Hulett, Head of Direct Investment at MaxCap.
“This is our first acquisition in Melbourne’s well established south-east logistics precinct, the most tightly held market in Victoria, primarily due to how rare sites like this are and how hard they can be to secure.”
Hulett said the company continues to see effective rental growth in established industrial precincts such as Clayton, primarily driven by sub-1% vacancy rates and a shortage of new development stock.
“Whilst demand has slowed from the highs of the pandemic, e-commerce penetration rates continue to grow, and the last mile delivery service remains highly competitive.”
Simon Hulett, Head of Direct Investment at MaxCap
“With an established residential population directly opposite the site and proximity to major arterial roads, demand for this location is likely to be strong.
“Our fourth joint venture with Troon Group follows the successful recent divestment of Chirnside Lifestyle Centre a couple of weeks ago. This strong track record provides our investors with confidence around our ability to execute against the project strategy for Clayton as we move forward through planning and delivery,” Hulett added.
A complex process
The property was a landfill site over 30 years ago.
Tom McInerney, Managing Director of Troon Group said there is always some complexity with the acquisition of such sites, undertaking “significant due diligence and stakeholder engagement to gain confidence in navigating this complexity with the relevant authorities to deliver much-needed supply of high-quality product to service the overwhelming demand for last mile logistics facilities.”
“The opportunity to be able to deliver a Super Prime industrial business park in this location was unmissable.
“10 hectare parcels of land in established metropolitan locations such as 618 Clayton Road do not come around very often.
Tom McInerney, Managing Director of Troon Group
“The ability for the Troon/Maxcap teams to work closely with our construction partner H.Troon and our highly regarded consultant teams will allow us to fast-track planning and delivery of much-needed stock to the market.”
The sale was managed by David Aiello, Senior Director CBRE Industrial & Logistics.
