Construction materials company Boral has teamed up with property group Dexus (ASX: DXS) to develop the Ravenhall Logistics Precinct, which is expected to become one of the largest industrial developments in Australia.
Located in Melbourne’s western corridor, the project will transform Boral’s 630 hectares of land into a massive warehousing and logistics centre, potentially offering up to 2.5 million sqm of floor space for lease.
The site is located approximately 20 km west of Melbourne’s central business district. In a press release, Boral said the facility will have direct access to the Western Freeway, sitting just 2 km from the future Outer Metropolitan Ring Road.
The land includes an existing rail spur connected to the Port of Melbourne, which could allow the precinct to handle freight via multiple modes of transport.
As part of the project, Boral will provide the land in stages at market value once rezoning is approved. Boral will maintain a 50% interest in the development, while Dexus and its investment partners will hold the remaining 50%.
Boral CEO Matt McKenzie described the agreement as a “significant milestone” that highlights the long-term value of the company’s property portfolio.
“Ravenhall is one of the most strategically important industrial sites in Australia. This partnership with Dexus allows Boral to unlock that value in a disciplined, capital-efficient way — contributing land rather than cash. It represents a continuation of our Good to Great strategy by optimising our significant land assets for recurring earnings,” said McKenzie.
The precinct will be developed on the site of Boral’s Deer Park quarry, a location where the company has been extracting basalt since 1968.
McKenzie said quarrying operations will continue without interruption, stating that the team will “sequence development stages around existing operations to maintain continuity of hard rock supply to the Melbourne market.”
Once the precinct is fully operational, Boral said it is expected to contribute approximately $14.9 billion each year to Victoria’s economy. The site is also projected to support more than 31,000 full-time equivalent jobs annually.
