One of the largest and most significant industrial developments in Australia will be delivered in Melbourne’s northern region, Minister for Major Projects David Hodgett announced today.
Mr Hodgett said contracts had been finalised to build around 72,000 square metres of warehousing at Melbourne’s new state of the art fruit, vegetable and flower wholesale market in Epping.
“It is anticipated that over 200 jobs will be created during the construction of warehousing, leading to significant expenditure in and around Epping,” Mr Hodgett said.
“Hansen Yuncken, a Victorian based builder/developer, will collaborate with Propertylink Australian Industrial Partnership, the Australian property venture between Goldman Sachs (USA) and the Grosvenor Group (UK).
Victoria welcomes the investment in the new market as it signals confidence in the future of Melbourne’s rapidly growing north.
“The delivery of this warehousing, equivalent in length to 1.2 kilometres or 5 Melbourne city blocks, will transform the operations of the new wholesale market and enable it to grow and develop into one of Australia’s largest fresh produce precincts.
“This unique collaboration with the private sector will see an initial build of around 72,000 square metres of warehousing for the Epping wholesale market, initially meeting the growing needs of more than 100 wholesalers, growers and retailers,” Mr Hodgett said.
“This substantial investment in the new market will better position Victoria’s $2 - $3.5 billion fresh produce industry to secure a greater share of the national market and further develop export markets.
The Victorian Government’s collaboration with the private sector has resulted in significantly improved efficiencies for the new Melbourne market, helping to keep costs down for market warehouse tenants.
Mr Hodgett said that as part of the collaboration Propertylink Australian Industrial Partnership will be granted ground leases for warehousing at the new market of around 40 years.
The plan for the market at Epping positions it to attract and develop a number of complementary businesses and industries which will create further jobs and substantial economic opportunities for the north.
Stephen McArthur, Chairman of the Melbourne Market Authority, said the private sector efficiencies in building, operating and managing the warehousing will deliver a better outcome for market tenants.
Propertylink Managing Director Stephen Day said the company was delighted to be part of one of the Victorian Government’s largest infrastructure projects.
“Propertylink have a very positive view of Australia’s food logistics industry and its associated infrastructure. The new facilities are fully integrated with the market’s trading areas and will provide a state-of-the-art operation for retailers with warehouse facilities with purpose-built insulation, sunken loading bays and extended hardstand areas that will be capable of handling the number of vehicles using the markets daily,” Mr Day said.
Richard Hansen, Victorian State Manager for Hansen Yuncken said the Epping wholesale market warehousing project represents the latest use of Hansen Yuncken’s project skills.
“We look forward to delivering an efficient and innovative commercial project in partnership with the state, in the quickest possible time,” Mr Hansen said.
Mr Hodgett said Hansen Yuncken had been working with market tenants over the last six months, to determine specific warehousing needs.
“This means the resultant warehousing will be fit for purpose and based on the specifications of individual businesses,” Mr Hodgett said.
“Most of the signed up warehouse tenants at Epping are businesses that have never had the opportunity before for on-site warehousing due to the constraints of the current Footscray Road market.
“The new market and warehousing will give these businesses additional flexibility, transport efficiencies and will help to drive down business costs through logistics efficiencies. Most importantly it will provide opportunities for innovation and growth like never before.
“With warehouse construction underway, the major trading floor building complete and fit out works underway, it is expected the new Epping market will open in the first half of 2015."
 Download the PDF