Melbourne Airport speculative development takes off

Australia Pacific Airports Melbourne (APAM) has fully leased its new 21,892sqm speculative development prior to practical completion in August this year.

Global logistics company Mode Logistics has leased a 10,910sqm warehouse while sportswear, fitness and lifestyle apparel brand Elite Eleven and APAM’s Aviation business have each leased a 5,491sqm warehouse.

Located at 64-74 Sky Road, the speculative development adds to Melbourne Airport’s 610ha Business Park, the largest of its kind in Australia. The park has a range of on-site amenities such as a hotel, childcare, café, local shopping options, petrol precinct as well as its own 18-hole golf course and surf park.

CBRE’s Daniel Eramo and Joe Brzezek negotiated the Mode Logistics and Elite Eleven deals on behalf of Melbourne Airport.

“APAM’s new tenants were drawn to the strategic location of the Melbourne Airport Business Park, providing excellent connectivity to all regions throughout Victoria, as well as direct access to Australia’s Eastern Seaboard,” Mr Eramo said.

Mr Brzezek added, “Melbourne Airport and Tullamarine continue to generate high volumes enquiry in northern industrial precinct with 14 lease transactions over 4,000sqm in the past 18 months, accounting for approximately 250,000sqm of leasing absorption.”

Melbourne Airport Head of Development, Stuart Verrier added, “We are delighted to have fully leased our first speculative development prior to construction completion.  Working closely with the team at CBRE, this project has given us the confidence to commit to a further four speculative developments due for staggered commencement over the coming twelve months. Two of these have been released to the market and the level of interest is beyond our expectations.”