Wolfdene plans an industrial project at 1450 and 1454 Thompsons Road, Cranbourne East.
Private developer Wolfdene has entered the industrial property sector, acquiring two sites in Melbourne where it will undertake $330m in development with its new partners.
The company is making the shift as it not only adds to its near $4bn pipeline but also diversifies beyond its residential business as Melbourne’s market is hit by rising costs.
Wolfdene is also using its longstanding residential business to help it pursue commercial projects in Melbourne’s growth corridors.
The company is repositioning due to conditions being tough in some areas, while booming in others. As part of its growth, it pushed into WA six years ago, becoming the state’s fifth-largest private developer.
Wolfdene has now bought two Melbourne industrial sites, taking it beyond its traditional greenfield residential subdivisions, in deals brokered by LAWD Property’s Peter Sagar.
In Melbourne’s southeast, it partnered with Wolf Group and Aspen Capital to acquire a 24.95ha employment precinct in Cranbourne East, known as Thompsons Corner. This will be developed into about 95 Commercial Zone 2 lots with an estimated end value of $200m.
In the north, the developer has expanded its partnership with Blueways Group into the industrial sector, securing 19.72ha in Donnybrook where a 91-lot light industrial subdivision with an end value of $130m is planned.
Wolfdene managing director Michael Goldthorp said the expansion into industrial showed both an evolution of the developer’s capabilities and a “disciplined” response to market cycles. “Our business has always been focused on identifying where the fundamentals are strongest and allocating capital accordingly,” Mr Goldthorp said.
“As one of Australia’s largest private developers, we’ve built a strong track record in residential land subdivisions, but we’ve also demonstrated an ability to pivot – whether that’s geographically into Western Australia or into sectors like industrial – where demand, pricing and delivery conditions are more favourable.”
Victoria’s greenfield residential market faces multiple constraints, including planning delays, high delivery costs and drawn out infrastructure builds, prompting developers to hunt out alternative areas.
Wolfdene’s industrial strategy focuses on growth corridors where population expansion, infrastructure investment and employment demand are aligned.
At Cranbourne East, the Thompsons Corner project is expected to cater for uses like large-format retail, quick-service retail, logistics and trade-based operators. In Donnybrook, the Shenstone Park precinct site is near the Hume Highway and Donnybrook train station, with integration into the Beveridge Intermodal Freight Terminal to drive long-term logistics demand.
“There is a clear gap in the market for serviced industrial land across a range of lot sizes, particularly in emerging precincts where supply remains constrained,” Mr Goldthorp said.
The projects will begin next year and are to be completed in 2028.