By PHILIP HOPKINS
CONSTRUCTION of civil works is set to start on the largest industrial and commercial project in Gippsland – the ICON Innovation Park in Morwell, the biggest development in the Latrobe Valley region since Mid Valley Shopping Centre 50 years ago.
Huge demand has pushed forward the development timeline for the 100-hectare park, which will accommodate 125 industrial businesses.
It includes a 10 hectare commercial centre, about two acres for a petrol station and foodery, and 12 hectares of parkland that goes through the heart of the project.
The estate is bordered by the Princes Highway, Alexanders Road and the Bega Dairy plant, and is next to the Australian Paper rail line.
Roads and services construction works are expected to start within weeks.
John Alom, the head of the developer Homeington Building Group, said the development would have five stages, some of which had been consolidated and made bigger compared with the original plan released last year.
“This will enable them to be delivered more quickly,” he told the Express so as to avoid rising costs.
“The cost of roads and services has increased at least 40 per cent compared to when I bought the project site back in 2022. Still, I am trying my best to deliver the lots cheaper than the going market price. We are getting very strong interest from both small, mid and large-scale occupiers and investors,” he said.
“It costs $200-$350 per square metre – 30 per cent cheaper compared to Pakenham.”
Mr Alom, a former engineer at the Hazelwood power station, said the innovation park was tipped to have a final economic value up to $800 million, providing more than 3250 direct and indirect jobs, with 1500 direct jobs in the various businesses that will be established.
Winslow is the Civil Contractor for the project and First National Dandenong and First National Morwell are sales and marketing agent.
Mr Alom said Stages 1 and 2 would cost more than $50 million to develop, with the individual tenants paying for their own buildings and fit-out. Both stages should be complete by the end of this year, while Stage 3 would start in May 2027 and end in 2028.
“It will take about four-to-five years to deliver everything,” he said.
The business park has a 10ha mixed-use commercial and retail centre, 78ha of industrial and the strategically placed service station that will feature an international food chain. The estate has allowed about 12ha for a wetland and landscaped open space.
Mr Alom said neighbourhood cafes would also be built throughout the park.
Stage 1 has 31 lots, with 21 lots (68 per cent) sold already. Due to the huge demand, Stage 2, with 31 lots was released; 11 lots (35 per cent) were sold within weeks. The lots vary in size from 1012 square metres to 15,860 sqm, with prices ranging from $200/sqm to $350/sqm.
The business park is targeting warehousing, storage and logistics companies, manufacturers, and packaging. Mr Alom said several big companies were in talks to take up residence. These included Australia Post, which is looking for a regional distribution centre; Costco; Homemaker Centre; and Tiny Homes, a provider of prefabricated housing. BP and 7Eleven were vying for the petrol station.
Mr Alom thanked the federal government for a $7.6 million grant to build a sewer pump station for ICON Park. The budget also includes funds for civil infrastructure in Morwell that will facilitate the development of more than 700 new homes in the Crinigan Rd development plan area.
“The Latrobe City Council has been very helpful in accommodating the planning permit and approval process. I thank the council and relevant authorities for their support to the project that will help the greater community,” he said.
Mr Alom is confident the industrial estate will be the centre of the major economic development for the Valley.
“Its location in Morwell at the centre of the Valley makes it a strategic project. ICON Park will serve the surrounding towns, making Morwell the centre of business for the Gippsland region,” he said.
