A deal will be set at a land rate around $600 per square metre, suggesting a price near $52 million, but neither company would confirm details.
Mobil said it was cleaning up the land under an Environment Protection Authority remediation plan. “As such, we sought expressions of interest from parties who intend to develop this land,” the company said.
“Mobil is currently managing a tender process for the development of our parcel of land.”
Time & Place controls a diverse development portfolio ranging from residential and commercial office projects to retail and industrial subdivisions.
Founded by Tim Price, the platform is no stranger to Melbourne’s western industrial market, where it currently has several developments in progress. Mr Price would not comment on the transaction.
Two months ago, it sealed an acquisition with ASX-listed logistics operator Qube Holdings to take over a large 137,000-square-metre property in Francis Street, Brooklyn, for $65 million.
Just before the coronavirus pandemic hit, the group sold a large office project in East Melbourne on Victoria Parade for $330 million in a fund-through arrangement to Singapore-based ARA Asset Management.
Along with joint venture partner Jeff Xu’s Golden Age Group, it will manage that development through to completion.
Mobil’s bill for remediation of the Spotswood site is likely to run into millions of dollars, chewing up a significant portion of funds the company will net from the transaction.
The fuel refiner began remediation of the site in 2014, razing the above-ground petro-chemical infrastructure and removing piping, storage tanks, warehouses and office buildings.
The visibility of the high-volume storage tanks to many thousands of commuters crossing the 2.5-kilometre West Gate Bridge was a reminder of the inner west’s fast-changing industrial past.
The property is listed on the EPA’s latest polluted sites register, meaning it is subject to a legally enforceable clean-up or pollution abatement notice.
The freshly cleared land in Simcock Avenue, just a few kilometres from the city’s shipping docks, is likely to be carved up into smaller industrial allotments, developed with warehouse offices and sold or leased to multiple users.
Time & Place is completing a 16.7-hectare Williams Point industrial development in Maddox Road in Williamstown North this year and has another 21.5-hectare site at 16 – 36 Dohertys Road, Laverton North, under construction.
Simon Johanson is a business journalist at The Age and The Sydney Morning Herald.