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Fund manager ISPT has gained approval for a $280 million industrial project that is set to transform the historic Dandenong Works property while giving a nod to the role the site has played for the region since World War II.
The 12.2ha site on Princes Highway at Dandenong, formerly home to International Harvester and Iveco Trucks, will be redeveloped into eight super prime-grade warehouse tenancies which will range from 1,500sqm to 30,000sqm.
The site was originally home to a purpose-built factory for local manufacturing during World War II, before becoming home to the International Harvester Company in 1952 and later being acquired by IVECO in 1992.
ISPT, a property investor with more than $20.5 billion in funds under management, acquired the Dandenong Works site in 2022 for $95 million.
The fund manager plans to incorporate sections of the original façade of the old building in the new design as well as salvaging 60,000 bricks which will be re-used in the finished product.
“The result is a site that embodies the existing character of the former International Harvester and IVECO factory site while providing much needed prime-grade industrial stock to the area,” says ISPT.
The approved development will provide 14.7m ridge height, 24/7 operation, eight-tonne post load slab and B-double access.
The new development is targeting a 5-Star Green Star Buildings rating and will feature a 1.4-megawatt solar power system across the site, EV car and truck charging, and responsible waste initiatives as well as offsetting upfront emissions.
“Dandenong Works is a perfect representation of what we’re working towards at ISPT – when complete, this new industrial project will celebrate the site’s original heritage, deliver industry leading ESG credentials and provide tenants with best-in class amenities and fit-outs,” says Matthew Cox, ISPT’s industrial project director.
“Dandenong Works is quite unique in terms of its heritage. It’s a site that we know the community cares deeply about, and we have worked tirelessly to ensure our scheme will capture the history, character and heritage of this well-known and keenly watched site.
“Prime grade industrial stock is highly defensible and strategic, and we are catering to growing demand by re-weighting our portfolio to include more high-quality industrial projects like Dandenong Works.”
The development will also include on-site amenities such as end-of-trip facilities and bicycle parking.
ISPT’s approval for the site follows recent updates to its industrial strategy, which included a reweighting of the Core Fund’s industrial holdings to between 30 to 35 per cent by 2030. The fund is currently weighted more heavily towards retail and office holdings.
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