Driving investment
Anew 16-lot subdivision contains the largest industrial blocks Horsham has seen on the market – and it is attracting interest.
Harcourts Horsham director Mark Clyne said the Kenny Road blocks, ranging from 4685 to 11,400 squaremetres, were meeting a demand for new businesses to establish themselves in the municipality, and allowing existing businesses to expand.
He said eight blocks were already on hold or under contract after going on the market before Christmas, with interest expected to increase in February.
“The subdivision caters for bigger businesses, so we have kept the blocks at a larger capacity for transport movements including B-double and potentially road train access,” he said.
“The purpose of that is to attract some bigger players into Horsham or allow existing businesses to expand, which then creates extra employment opportunities and caters for the demand.
“A lot of the existing industrial estates are 30 to 50 years-old, so do not meet modern requirements.”
Mr Clyne said his team often fielded inquiries for industrial land, particularly in the past three years.
“There might not be any industrial subdivisions available after this lot for another two to three years, so we’re still hamstrung there,” he said.
“With some of the announcements that could be made this year, with value-adding in the grain and mineral sands industries, we want to make sure we can supply land.”
Mr Clyne said industrial land in Horsham was good value, and the subdivision would be first-class.
“It will be fully serviced with threephase power, sewerage and town water, and meet all drainage requirements,” he said.
“In Horsham, these blocks will probably average $120 a square-metre, whereas in Ballarat the rates are about $400 to $600 a square-metre and Melbourne is between $1000 and $1600 a square-metre for industrial land.
“We are still very good value, which is why some of these companies, if they can do business in Horsham, want to set up here – where they have a good workforce and a central base.”
Mr Clyne said a healthy and vibrant industrial sector was a vital part of the community and economy.
“A lot of people judge the health of Horsham based on how many shops are full or empty in the main street, but I can assure people the prosperity of Horsham at the moment is all occurring in the industrial and commercial areas,” he said.
“The industrial estates are one of our biggest employment drivers now, which wasn’t the case years ago, and the incomes that are generated there are not on the lower end of the scale.
“There’s serious money generated in that sector, which hopefully gets spent back in our town with our retailers – that’s what we want.”
Mr Clyne, also chair of Westvic Business, said the Wimmera had lots of potential and was in the best position to capitalise on that, now.
“Horsham has become a central hub and when we see mining activities progress over the years, there will be multiple companies wanting to set-up base here,” Mr Clyne said.
“By the same token, if we don’t have land available, they will find somewhere else to set up and that is what has happened in the past.
“If they go somewhere else, so do the jobs and opportunities, which harms the retail sector and flows into housing, the school sector, volunteers and everything in our community.
“For a long time, the population of the Wimmera has been in decline, so we have to be able to turn it around and I think we are on the cusp of that change now.
“If we get a boost from valueadding the grains industry, agribusinesses and multiple mineral sands projects, it will certainly put the Wimmera back on the map.”
Wimmera Southern Mallee Development chief executive Chris Sounness said it was vital for the region to have industrial land available to enable businesses to invest.
“It’s key because business activity is what our region is built on,” he said.
“Agriculture is a major piece of
these opportunities and moving goods is a key driver in a lot of the use of industrial land.
“If we want to grow new businesses, having land that is suitable for companies wanting to come here is key – whether it is in agriculture or a totally different industry.”
Mr Sounness said the Wimmera only processed about one percent of what it produced.
He said there had been some success stories in recent years of businesses
capitalising on value-adding opportunities, with the meatworks in Stawell, Australian Plant Proteins in Horsham and a new export hay processing facility in Dooen.
“There is a real opportunity to value add in our industries. However, there is always a challenge to make sure we have the right land, in the right spot for the right company,” he said.
Mr Sounness said while towns across the region had some industrial
land, the needs of businesses continued to evolve.
“We think about transport – it is one of the biggest challenges as the logistics with the size of trucks and being able to turn around on site often means land and shed sizes are a lot bigger than what was envisaged 20 or 30 years ago,” he said.
“As the world changes there is opportunity, but also challenges, and one is having industrial land suitable for big trucks and sheds.”