Melbourne developer buys $100m estate on first trip to Townsville
A Melbourne property developer is so confident in Townsville’s future he shelled out $100m on his first trip here. Here’s why.
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Melbourne industrial property developer Peter Fountas likes what he sees in Townsville.
So much so that he stumped up around $100m for an industrial estate on his first trip here.
Now that estate, Cleveland Bay Industrial Park, near the corner of the Bruce Highway and Ron McLean Drive, is set to host its first projects, including the state government’s planned $75m critical minerals demonstration plant announced last week.
Mr Fountas, in a partnership with Angelo Bruno, operates Virtus Property Group.
After a successful 10 years servicing the industrial building sector in Melbourne, Mr Fountas told the Bulletin he was looking for opportunities elsewhere and struck on Townsville.
He had been reading about the city, what was happening here and what was expected to occur.
But it was not until Covid-19 travel restrictions were lifted in late 2021 he was able to visit.
He struck a deal with Cleveland Bay’s industrial developer Ross Kiernan on the spot and instead of buying a couple of sites, bought the whole show.
Mr Fountas said few viable opportunities were available in Melbourne.
When it was suggested he could have gone anywhere, for example Cairns, he said they didn’t have the port expansion, the Singapore military training initiative and other developments.
“I was trying to find an opportunity and this came about. I can’t make anything stack in Melbourne. I love (Townsville). I think the population is going to explode,” Mr Fountas said.
Mendi Group has been building the 90ha industrial estate on the southern port road and
Townsville’s Pascoe Commercial and JLL out of Melbourne are marketing sites.
Much of the first stage has been sold and construction of stage two is beginning.
Pascoe Commercial managing director James Pascoe expected a rapid take-up of sites.
“We are receiving extremely good inquiry. It’s very exciting for the town,” Mr Pascoe said.
Other enterprises locating to the industrial park include IOR Fuel, Sizer & Cogill, RGM Maintenance, Woodham Petroleum, Gough Plastics, Impact Fertilisers, Bridgestone, Haulmark Trailers and Tropic Petroleum.
Virtus says its vision is to develop a market leading industrial estate providing the very best in prime grade industrial facilities to the most prominent and active businesses in the country.
“We firmly believe Townsville, Cleveland Bay and the (Townsville) State Development Area have all the key fundamentals to achieve this with regards to its people, industry, location, road infrastructure, rail and proximity to the Port of Townsville,” the developer says.
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Originally published as Melbourne developer buys $100m estate on first trip to Townsville
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