One of the last large greenfield industrial sites in Melbourne’s south-east is being transformed into a $1.1-billion logistics and manufacturing hub, as construction begins on the 62.3ha Daybreak Dandenong South estate.
Pension fund-owned IFM Investors has begun work on its project at 265 Dandenong-Hastings Road—more than 283,000sq m of industrial and logistics space across multiple stages.
Stage 1 comprises about 83,700sq m across up to eight tenancies and is expected to be complete in February 2028.
The site is alongside Western Port Highway and Portlink Drive, and has direct access to EastLink, the Monash Freeway and the future Dandenong South Intermodal.
IFM said it was one of the last greenfield development opportunities in the Dandenong South industrial precinct.
According to IFM Investors head of real estate Scott Mosely, large-scale opportunities in the area were becoming harder to find.
“Opportunities to deliver industrial real estate development at scale in Dandenong South are increasingly limited. The project will deliver high-quality industrial space in one of Australia’s most important manufacturing and logistics markets.”
An independent economic assessment found the development would contribute more than $490 million in economic value, support more than 3090 full-time equivalent job years during construction and about 2370 full-time equivalent jobs a year once operational.
IFM is targeting a 5 Star Green Star Buildings rating. The planned sustainability initiatives include solar PV systems, rainwater harvesting, electric vehicle charging infrastructure and more than 2.8ha of landscaped open space.
“Greater Dandenong has a long history of supporting industry, innovation and employment. Developments like this help ensure businesses have access to the modern industrial space they need to grow, invest and support Victoria’s economy,” Mosely said.
“As a long-term investor, we’re focused on investing in high-quality assets in the right locations.
“This development will support jobs, investment and productivity while delivering long-term value for our investors and the millions of working people they represent.”
IFM Investors has assets under management of about $271 billion and serves more than 800 institutional investors worldwide.
