• Project: Daybreak Dandenong South
• Address: 265 Dandenong-Hastings Road, Dandenong South (also known as 265 Western Port Highway)
• Developer and owner: IFM Investors, 100 per cent
• Site: about 62.3 to 62.4 hectares, with a gross development area of around 54.5 hectares
• Total built form: roughly 281,000 to 283,000 sqm across about 20 warehouses
• Warehouse sizes: from about 7,000 sqm to more than 80,000 sqm
• Stage one: about 83,700 sqm across up to eight tenancies, due February 2028
• Expected end value: about $1.1 billion
• Sustainability target: 5 Star Green Star Buildings
• Council: City of Greater Dandenong, which approved stage one earlier this year

For decades the land at 265 Dandenong-Hastings Road was farmland, held by the same private owner since 1985 while the industrial suburb grew up around it. In 2022 the site was sold off-market through CBRE to ISPT, the industry super fund property manager, for a reported price of about $300 million. ISPT was building a south-east land bank at the time. Around the same period it also paid about $100 million for a 78.9-hectare development site at Officer South.

IFM Investors, which is owned by Australian pension funds and manages more than $260 billion, took over ISPT in late 2024 and inherited the site. ISPT lodged the redevelopment application and the City of Greater Dandenong granted a permit for the first stage around six months later, as reported in March 2026. IFM's project director at the time described it as the largest industrial project the group had taken on in recent times.

The ground has now been broken. That moves Daybreak from a planning story to a delivery story, which is what tenants and agents in the south-east have been waiting for.

The estate runs alongside the Western Port Highway and Portlink Drive. It has links to EastLink and the Monash Freeway, which carry freight to the rest of Melbourne and to the Port of Melbourne. It also sits beside the planned Dandenong South Intermodal, a rail-linked freight terminal that would let occupiers shift containers off trucks for the run to and from the port.

Next door is Salta's Nexus Estate, which has been built out in stages over recent years and has recently renewed Bunnings as a tenant. Reports have described the site variously as Dandenong South and Lyndhurst, which reflects where it sits on the southern edge of the precinct. IFM itself markets it as Dandenong South.

Dandenong South has long been called the "Toorak of industrial" for its land values. It is Melbourne's most valuable industrial area outside the inner city, with a deep base of manufacturers, distributors and trade businesses that want to stay close to the south-east's population and workforce.

The master plan calls for about 20 warehouses delivered over several stages. Sizes run from around 7,000 sqm, which suits mid-sized distributors and manufacturers, through to more than 80,000 sqm for national logistics operators and major retailers. Office space is built into the total. Stage one offers up to eight tenancies and IFM has listed the first buildings as available for lease.

The sustainability brief is a strong one. Every warehouse targets a 5 Star Green Star Buildings rating. The plans include:

• rooftop solar PV
• rainwater harvesting
• EV charging
• recycled building materials and a targeted 10 per cent cut in embodied carbon
• more than 28,000 sqm of landscaped open space across the estate

An independent economic assessment commissioned for the project estimates more than $490 million in economic value. It also forecasts more than 3,090 full-time equivalent job years during construction and about 2,370 full-time equivalent jobs a year once the estate is running.

IFM's head of real estate, Scott Mosely, has framed the start of works as a major milestone for the business. He pointed to the scarcity of industrial development at this scale in Dandenong South. That is the core of the investment case. Very little land is left in the precinct that can deliver big-box, high-clearance warehousing and the sites that do exist tend to be small infill lots.

Starting stage one in late 2026 means the first buildings will reach the market in early 2028. Much of Melbourne's recent big-box supply has landed in the west. A 2028 delivery date in the south-east, where new stock is scarce, gives IFM a long runway to secure pre-commitments before the buildings are finished.

There is also a long-term ownership angle. As a pension-fund-owned manager, IFM can hold the finished estate for income. It does not need to sell down on completion, so it can afford to build at scale and lease patiently.

Daybreak arrives during a busy stretch for Melbourne industrial property. In the past week alone:

• Fitzgerald Road Logistics Hub, Laverton North: JB Hi-Fi became the first tenant at the Charter Hall and Mitsubishi Estate Asia estate, taking the whole 41,238 sqm stage one building for its Big and Bulky Home Delivery Centre network. That estate is planned at about 175,000 sqm with a projected end value of $500 million.
• 437 Plummer Street, Port Melbourne: Goodman leased 45,249 sqm vacated by Iron Mountain to Australia Post, the Victorian Electoral Commission and G4P.
• 434-442 South Gippsland Highway, Dandenong South: an industrial facility was leased to Utility Solutions Group through Colliers.
• Ravenhall: Dexus, Boral and Pelligra moved closer to developing sites on Riding Boundary Road after a state government rezoning from farming to industrial.

On land values, the south-east remains the premium market. When ISPT bought the Daybreak site in 2022, nearby sales included a 4.25-hectare warehouse at 22-44 Brooks Drive for $34.4 million and a 1.69-hectare distribution centre at 8-10 Healey Road for $21 million. Those figures show why a single 62-hectare holding in the precinct commanded a nine-figure price.

For occupiers, Daybreak is a rare chance to move into new, large-format space without leaving Dandenong South. Many businesses in the precinct are in older buildings with low clearance, tight hardstand and poor energy performance. Until now their choice has been to stay put or to move west to Truganina, Derrimut or Laverton North, where most of Melbourne's new big-box supply has gone. A south-east pipeline of this size changes that.

For landlords of older stock nearby, it adds competition. Tenants with leases expiring in 2027 and 2028 will be able to compare their current building against a brand-new 5 Star Green Star alternative down the road. That will put pressure on owners to upgrade, refurbish or sharpen incentives.

For the wider market, the project confirms that institutional capital still sees Melbourne industrial as a core long-term holding, even after a period of rising vacancy. It also shows how much value now rests on infrastructure. The planned intermodal next door is part of what makes the site worth more than a standard industrial lot.

• Pre-commitment starts with a picture. Stage one will not be finished until 2028, so tenants are being asked to commit to buildings that do not exist yet. Clear site plans, renders and staging diagrams do much of the leasing work long before the first slab is poured.
• Location is the headline. Daybreak's pitch leans hard on the Western Port Highway, EastLink and the intermodal. Any industrial campaign should make access and catchment obvious within seconds.
• Sustainability is now a leasing tool. Green Star targets, solar and EV charging help large corporate occupiers meet their own reporting goals. Spell them out in the marketing, not just in the planning documents.
• Older stock needs a story. Owners of ageing sheds near a new estate should show what makes their building good value, such as a better rent, a quicker move-in or a planned upgrade.

The first signal will be tenant commitments for stage one. A major national or retail logistics name signing early would confirm demand for big-box space in the south-east and would likely speed up later stages. Watch also for progress on the Dandenong South Intermodal, which underpins a large part of the estate's long-term appeal. Approvals for stages two and three are also worth tracking.

Finally, watch how rents for new south-east space compare with the west. If Daybreak secures a clear premium over Truganina and Laverton North, it will reinforce Dandenong South's reputation as Melbourne's top suburban industrial address. Either way, 265 Dandenong-Hastings Road has moved from farm paddock to construction site and the south-east finally has a large new pipeline on the way.