Developer CostaFox has secured a cool profit on a prime industrial land parcel in Epping north of Melbourne after purchasing the site for $9.5 million two years ago.
The 9.7-hectare site, located at 415-425 Cooper Street, was snapped up by emerging developer Time and Place for upwards of $20 million.
Bordering the Hume Highway feeding into Melbourne's northern suburbs, the site is flanked by some high-profile business with nearby occupiers including Mainfreight, Mission Foods, Chemist Warehouse, Visy, Coles, Bluestar Logistics, Linfox and Toll.
The site has been through substantial consultation with Costafox finally being awarded development approval after lengthy process.
“The timing of the purchase at Cooper Street and getting through a difficult planning process had added substantial value to the site,” CostaFox development director Geno Hubay said.
“We have been stuck in planning for two years trying to get through local and Commonwealth issues and our approval was a good fit with the move of Time and Place into the industrial market.”
Time and Place, who have begun to express a strong interest in industrial land lot projects with plans to grow the asset class over the next five years.
“The industrial land lot market is booming with intense demand coming from mum-and-dad businesses and SMEs,” Time and Place commercial director Chris O’Keefe said.
“We are seeking to capitalise on this demand by delivering industrial land subdivisions where supply is drying up and complement our residential arm of the business.”
“This particular site was of interest to us due to its proximity to the existing Hume Highway and its location nearby to the Epping Wholesale Market and booming residential precinct to the north.”
Time and Place also recently received planning approval for a 16.7-hectare, 75-lot industrial development on Maddox Road in Williamstown North, one of the last developable sites in the western logistics precinct.
The project, dubbed Williams Point, has added $85 million to the developer’s pipeline with the first two stages of the three-stage development already pre-sold at a rate about $600 per square metre.
The developer also plans to commence construction in the next year on its 11-level office in East Melbourne after gaining planning approval for a premium building.
Frasers Property Australia has also recently secured a huge prime industrial land parcel in Epping for $40 million, directly opposite 415-425 Cooper Street.
The 63.4-hectare site will eventually become home to a $250 million masterplanned estate, the first stage of which is expected to be released next year.