Centuria Industrial REIT opens $116m north Melbourne industrial estate

18 April 2024

Australia’s largest listed pure-play industrial fund, Centuria Industrial REIT (ASX: CIP), has opened north Melbourne’s newest industrial estate, the $116million “M80 Connect,” with the development already more than 50% leased.

Located at 100 Bolinda Road, Campbellfield VIC, the super-prime facility provides five warehouses totalling 45,375sqm within a 7.92ha site. The development was officially opened by Federal Member for Calwell, Maria Vamvakinou MP; Treasurer of Victoria, The Hon. Tim Pallas MP; State Member for Broadmeadows, Kathleen Matthews-Ward MP; State Member for Greenvale, Iwan Walters MP; and Hume City Council Mayor, Cr Naim Kurt.

M80 Connect has been delivered to meet rising occupier demand for modern, sustainable facilities in north Melbourne’s industrial heartlands where vacancy rates have reached a low 0.7%.

Prior to opening, M80 Connect is c.56% leased with power infrastructure and critical equipment enclosure specialist, EnerSys Group Australia & New Zealand; and global logistics company, LX Pantos.

When fully occupied, it is anticipated M80 Connect will deliver c.280 new jobs for the Campbellfield community. This is in addition to the 450-675 jobs generated during the property’s development.

The property is owned by CIP and was developed by Cadence Property Group in conjunction with Centuria’s in-house development team. The estate was delivered by builder Texco Construction.

Jesse Curtis, Centuria Head of Funds Management, said, “It is a privilege to open M80 Connect in the company of such esteemed leaders. Their presence highlights the growth of Australia’s industrial sector and its significant contribution to our economy from a local to a national level. The domestic industrial markets continue to be driven by burgeoning ecommerce adoption and rising onshoring trends, creating more jobs and supporting other expanding industries such as infrastructure, logistic and retail.

“Within the north Melbourne industrial market, M80 Connect stands out as the beacon of a new generation of industrial development with strong sustainability credentials and spaces that lend themselves to last mile operations. We are proud to provide our customer tenants with such a high-quality new premise for their businesses and warmly welcome ICS Industries and LX Pantos to their new home.”

In the past three years, CIP has developed more than $200million of industrial assets within Victoria. Across the next five years, CIP has identified a $1.0billion development pipeline nationwide.

CIP is one of Victoria’s largest industrial landlords with a portfolio of 32 assets worth c.$1.4billion.

Federal Member for Calwell, Maria Vamvakinou MP, said, “This investment signals strongly that our community remains the key hub for local manufacturing and the building of our industrial capacity, helping drive innovation across our economy. The industrial development will help deliver economic growth locally across the supply chain, as well as create the jobs required to revive Australia’s advanced and sovereign manufacturing capabilities.”

Treasurer of Victoria, Minister for Industrial Relations and Minister for Economic Growth, The Hon. Tim Pallas MP said “The growing industrial sector is a significant contributor to our state’s economy. Developments like M80 Connect give Victorians confidence about our economic future – supporting jobs, keeping local communities strong and encouraging businesses to invest and expand their workforces.

State Member for Broadmeadows, Kathleen Matthews-Ward MP, said “The delivery of M80 Connects is a welcome addition to the Broadmeadows community and the Campbellfield neighbourhood. The development breathes new life into the area and contributes to the job growth, business diversity, economic growth and the overall identity of Broadmeadows.”

Mayor of Hume City Council, Cr Naim Kurt, also said, “Centuria’s commitment to Campbellfield underscores the strategic location Hume City Council holds for businesses, as a gateway to major freight terminals, highways and the Tullamarine Airport. The M80 Connect development is a strong endorsement of the work Hume City Council is leading in supporting investment and job creation for our community, and we look forward to working with Centuria to maximise the opportunity for local employment.”

Charlie Buxton, Cadence Property Group Chief Executive Officer, said “M80 Connect is our second development delivered in partnership with Centuria, following the successful completion of Southside Industrial Estate in Dandenong South. It presents and outstanding opportunity for tenants to secure A-grade industrial space in this tightly held location and comes at a time of very tight vacancy.

“This development builds on our reputation as a trusted and capable delivery partner within the logistics sectors and we are thrilled with the outcome for Centuria.”

M80 Connect features 15m-35m loading canopies allowing for all-weather operations, excellent B-Double access, secure container rated hardstand, multiple on-grade container-height motorised roller shutter doors, recessed loading docks, ESFR fire sprinkler system and 277 car parking spaces.

Sustainability features include electric vehicle charging stations, 350kw solar system, rainwater harvesting for estate irrigation, water efficient fixtures and fittings, and energy efficient lighting. The development is targeting a Green Building Council of Australia Five Star Green Star rating.

M80 Connect provides access to a population of more than 4.5 million people within a 60-minute drive time, demonstrating its reach to a dense and growing population.

Its highly accessible location is a mere 15km from Melbourne’s CBD, 10km from Tullamarine Airport, 17.5km from the Port of Melbourne and provides direct access to the Metropolitan Ring Road.

Remaining units include Warehouse 2 (9,303sqm) and Warehouse 3 (10,528sqm).

Daniel Eramo and Joe Brzezek from CBRE together with Robert di Natalie and Krista Hibert from JLL are the appointed leasing agents.