Will The New Lendlease Logistics Facility Redefine Infill Industrial Real Estate?

Lendlease appf industrial and dhl supply chain sign agreement for melbourne logistics hub to construct a purpose built distribution facility and meet rising demand for urban infill real estate

Lendlease’s Australian Prime Property Fund Industrial (APPF Industrial) has partnered with DHL Supply Chain to build a state-of-the-art industrial real estate facility in Altona North, Victoria. Set on a nine-hectare site at 121-139 Dohertys Road, the purpose-built distribution hub caters to the rising need for state-of-the-art industrial infrastructure in Melbourne’s urban infill areas. Construction started in June 2026, and practical completion is expected in October 2027 when APPF Industrial will take over the management of the asset under a long-term leasing agreement.

The project has been developed in line with the changes in supply chains while making use of the close distance to transport infrastructure for efficient freight transport. Core project execution highlights include:

• Delivering high-specification, custom distribution space tailored to DHL’s operational demands.

• Repositioning low-coverage site space into modern, high-efficiency logistics real estate.

• Underpinning fund cash flows with long-term, resilient tenant lease commitments.

"As our customers grow and their supply chains needs become more complex, it's important that we continue investing in the right infrastructure to support them. This new facility in Melbourne will strengthen our network, provide capacity for future growth and help us deliver the reliable, flexible service our customers expect." - Steve Thompsett, CEO Australia & New Zealand at DHL Supply Chain.

Tim Simpson, Fund Manager for APPF Industrial, noted that occupiers increasingly prioritize proximity to urban centers as logistics models evolve.

• Urban infill locations offer reduced transit times to key customer populations.

• Constrained supply in prime submarkets continues to drive long-term asset value.

Unlocking underutilized land in key industrial precincts enables institutional funds to generate stable, risk-adjusted returns. Working with global logistics companies ensures the resilience of the supply chain across different regional centers while enabling modernization of distribution systems. CIO Bulletin views this development as a decisive move toward meeting tight supply constraints through high-specification urban infill industrial real estate investments.