Icon Developments Acquires Strategic Logistics Site in Broadmeadows

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Icon Developments, wholly owned by the Japanese property and construction giant Kajima, has exchanged contracts to acquire a strategic logistics site at 1 Broadfield Road, Broadmeadows, Victoria. The 4.4-hectare site is set to be developed into a $90 million+ multi-unit logistics estate with a proposed NLA of 28,000m².

This acquisition marks the first under a strategic joint venture with Elanor Investors Group, aiming to establish a high-quality industrial and logistics portfolio. The strategy for this JV is to grow a $250 million+ medium to large-scale industrial platform along Australia’s east coast.

The announcement comes as Icon Developments begins construction at Cremorne Place, a nine-level, 13,000m² office building developed in conjunction with Zagame Property at 120 Cremorne Street, Cremorne, Victoria. It is one of the few new office projects commencing construction.

Icon Developments Cremorne Place
^Icon Developments is set to begin construction on Cremorne Place at 120 Cremorne Street, Cremorne, Victoria (Image: Icon Developments)

Icon Developments plans to continue its counter-cyclical development program in the currently cautious real estate market, initiating construction across several projects in 2024. These include Motif 3220 in Geelong, Emerald Place in South Melbourne, 499 Kent Street in Sydney’s CBD, and two luxury residential projects in Auckland – Domain Collection and York House.

Matthew Bourke, CEO of Icon Developments, emphasized the benefits of their financial backing from parent company Kajima.

“We now have a legitimate and sustainable development pipeline with an end value of circa $1.5 billion across all built form sectors,” said Bourke. “This latest industrial and logistics acquisition is a new class of investment for Icon Developments. We will continue to partner with industry-leading developers in areas that may be seen as a departure from our core business model.”

Icon Developments’ Chief Investment Officer, Brinn Tavener, also commented on the acquisition and the new partnership with Elanor.

“The Broadmeadows acquisition and our newly-formed partnership with Elanor is an exciting one. We’ve taken a long-term view of the industrial and logistics sectors, and we’re looking at other brownfield sites which we intend to add to the portfolio over time.”

Located in one of Melbourne’s most coveted industrial areas, the 4.4-hectare site presents a prime infill development opportunity, thanks to its strategic position in Melbourne’s northern region. Broadmeadows, a key industrial hub, is witnessing a significant increase in demand for contemporary logistics and industrial facilities. Research by Colliers indicates that Melbourne’s North has seen substantial rental growth, with prime rents soaring by 29.9% year-on-year, driven by extremely low vacancy rates and a scarce land supply.

Icon Developments’ acquisition of the Broadmeadows site will further expand the group’s portfolio as they advance their commitment to quality projects in the Victorian market.

Note: The information presented in this article is for general informational purposes only and should not be relied upon as legal, financial, or professional advice. While we make every effort to fact-check and verify the information presented, we cannot guarantee its accuracy or completeness. Readers are encouraged to independently verify any information they find on our website and to consult with relevant professionals before making any decisions based on the information presented. The Australian Development Review does not own the rights to the information included within this article, and furthermore, there is no infringement intended from the included text and images within.

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