Industry News, News

Boral looking at ‘repurposing’ part of Deer Park quarry site

Boral is investigating potential development opportunities for part of its Deer Park quarry site with the aim of developing a long-term recurring income.  

The proposal was revealed in the company’s 2024 half-year presentations which highlighted the 1,105-hectare site’s potential future.  

Boral is working with developer Logos to identify industrial development opportunities with 450 hectares thought to be a developable area. 

According to reports, Boral chief executive Vik Bansal told investors the company would be able to bank the income from the project. 

“(The) underlying driver and purpose is to ideally create a long-term recurring earnings stream for Boral,” he said at the earnings presentation earlier this month.  

“When it is confirmed that a site is surplus to our operations, the team shifts focus to repurposing the asset.” 

Vik Bansal is the chief executive of Boral. Image: Boral

The quarry site was previously identified as “state significant industrial land – future” by the Victorian government and is zoned for quarrying and industrial activities.  

It is part of a potential major change for Boral, who are currently looking over a takeover bid from Seven Holding Group which was also announced this month.  

It is part of a shifting trend for Deer Park in Melbourne’s north-west. While Boral is investigating potential uses for part of its quarry site, Orica sold off surplus land at its Deer Park site.  

Orica completed its deal with UniSuper for $260 million for 66 hectares of surplus land, which is around half of Orica’s total surplus land holdings at Deer Park. The net profit after tax from the sale is approximately $173 million.  

“The sale will not affect the ongoing operations of Orica or its tenants on the bordering industrial precinct and will allow Orica to continue to focus on its core manufacturing and customer operations at Deer Park,” Orica said in an announcement.  

“The remaining surplus land at the site (stage 2) is expected to be offered to the market in the future, pending the completion of remediation activities, securing approvals from relevant authorities, and supportive market conditions.”  

In announcing the deal, UniSuper indicated the site will provide modern industrial facilities in Melbourne’s west. UniSuper will work with GPT and developer HB+B Property to develop the logistics, warehousing and manufacturing site.  

“This super prime parcel of industrial land further improves the quality of our diversified unlisted property portfolio and adds to our exposure to the logistics and warehousing sector following on from other recent acquisitions,” UniSuper’s senior property manager Nick Stephens said. 

“The transaction highlights UniSuper’s ability to secure high-quality property investments that help our members grow their retirement savings.” 

Send this to a friend