Charter Hall Teams With Mitsubishi Estate to Develop Melbourne Industrial Park

Australian fund manager Charter Hall has formed a joint venture with Japanese property giant Mitsubishi Estate to develop an industrial park in Melbourne’s western suburbs.

The project will provide 40,000 square metres (430,556 square feet) of warehouse space as the first stage of a A$500 million ($356 million) estate with development potential of up to 175,000 square metres of lettable area, Charter Hall said Wednesday in a release. The JV’s financial details and ownership structure weren’t disclosed.

The tie-up comes amid a rebalancing of Mitsubishi Estate’s Australia footprint, as the TSE-listed titan rotates capital from land lease and legacy holdings into higher-growth assets. The project site lies within the Laverton North industrial precinct, where Charter Hall has existing long-term leases to tenants including Coles, Woolworths, Aldi and Australia Post.

“Through this partnership, we will deliver a brand new, state-of-the-art facility that strengthens our capacity to service significant tenant customer demand in a tightly held pocket of Western Melbourne,” said Charter Hall managing director and CEO David Harrison.

Ten-Month Build

Situated at the junction of Dohertys Road and Fitzgerald Road, two industrial arterials near the West Gate Freeway, the new project enjoys road connectivity to northern, western and southeastern markets and the Port of Melbourne, according to Charter Hall.

The development’s warehouse space can be divided into two tenancies. Sustainability initiatives include 400 kilowatts of solar power and 80,000 litres (21,134 gallons) of rainwater tanks for recycled water, as well as water- and energy-efficient fixtures and fittings.

Construction of the estate’s first stage began last month and is scheduled for completion in November. Charter Hall is investing in the JV through its A$14 billion CPIF industrial fund, which buys, develops and manages warehouse assets in key Australian cities. 

The fund’s previous projects include the 47 hectare (116 acre) MidWest Logistics Hub in Truganina, west of Laverton North, with tenants including Coles (30,000 square metres) and Japanese fashion retailer Uniqlo (46,000 square metres).

Recycling Programme

The newly minted JV comes after Mitsubishi Estate this month put up for sale its 49.9 percent stake in a land lease venture with Aussie builder Stockland.

The portfolio includes six operational land lease communities, in which residents own the home but lease the land beneath it from the community operator, akin to a trailer park. The Japanese giant said the divestment would allow it to recycle capital and pursue further opportunities in the Australian market.

Mingtiandi reported last month that Mitsubishi Estate was in talks to sell its 20 percent interest in Sydney’s Salesforce Tower to Singapore-listed OUE REIT, after marketing its holding in the 56-storey office building since 2024.

Australia head Yosuke Matsunaga said the Melbourne industrial project aligns with Mitsubishi Estate’s strategy to expand in the country through partnerships with leading operators, focusing on high-conviction locations and sustainable assets.

“We look forward to strengthening our partnership as we deliver this estate,” Matsunaga said.