Aware Real Estate (ARE) has expanded its Victorian industrial footprint following the acquisition of Austrak Business Park, a 99-hectare industrial estate in Melbourne’s north.
Aware conducted the acquisition in partnership with Barings, with the cost totalling about $600 million.
The business park is strategically located 20km north of Melbourne’s CBD, 10km north-east of Tullamarine Airport, and 22 km north of the Port of Melbourne. It is also connected to major road and rail transport infrastructure.
Current tenants include Coles and Bunnings, and current works are set to make it Australia’s largest intermodal freight terminal by 2025.
The purchase includes existing buildings and development land and encompasses roughly 373,000 square metres.
Aware Real Estate CEO Michelle McNally says the acquisition is the latest step in the company’s strategy of investing in well-located assets with strong tenants.
“The Austrak Business Park represents a significant milestone for our strategic growth into the industrial sector and follows our other developments in NSW, The Yards and First Estate,” McNally says.
“Our strategy will deliver high-quality new developments with strong placemaking featuring amenities for the site such as cafes and ESG performance with energy efficient buildings, solar panels and EV charging.
“We will also create a new identity for the estate with targeted marketing strategies to increase its visibility and attraction to potential tenants.
“We also expect an uptick in demand for the Park once the Somerton Intermodal Terminal becomes fully operational next year and able to accommodate up to one million TEUs.”
The transaction is the latest deal borne out of the partnership between ARE and Barings, with Barings Real Estate Executive Director Shaun Hannah stating the long-term relationship stands to benefit both organisations, and tenants of the Austrack Business Park.
“Barings is pleased to continue its partnership with Aware Real Estate through the sourcing of a high-quality industrial and logistics asset that will benefit from significant investment,” he said.
“This is also an opportunity to unlock value through a master planning process and develop the 100-hectare site to its full potential,” he said.
“We believe Austrak Business Park is a transformative precinct and are excited to redefine supply chain efficiencies both in Melbourne and for the state of Victoria through this development.”
ARE has acquired 100 per cent of the Somerton-located property from the former 50/50 joint venture owners GPT and Austrak AFM.
ATN