THE state government has approved a plan to build a $405m high-tech industry and business park in Somerville that aims to ease a critical shortage of industrial land in the region.
The project by Procter Investments Pty Ltd would occupy a parcel of land at 79 and 83 Bungower Rd in Somerville, spanning some 37 hectares, with $1b projected in economic value.
Under the proposal, the development would offer facilities for manufacturing, research and development, smaller start-ups and small to medium enterprises, with 1100 jobs expected to be generated.
Planning Minister Sonya Kilkenny last week approved the plans, known as Amendment C243morn, which would see the land rezoned from Special Use Zone (SUZ1) to Industrial 3 Zone to allow development of a technology, industry and business park.
This rezoning represents the first time in more than 45 years that land set aside for port-related uses has been released for general industry.
The site had been set aside for port-related uses since 1981, under what was known as the Hastings Port Industrial Area Planning Scheme.
In 2018, the site was declared surplus to the requirements of the Port of Hastings and was identified for investigation for industrial uses.
The business park development is being led by local resident Chris Procter, former CEO of Sealite, which operated for over 20 years in Somerville, designing and manufacturing high-tech navigation aids for marine and aviation applications.
In 2021, Sealite was acquired by NYSE-listed SPX Corporation.
Speaking to The News, Procter said with the planning scheme amendment now approved, the project would move into a detailed planning and design phase, as well as preparation of a master plan.
He said the direct construction cost was estimated at $357.2m which was expected to generate another $450.7m in indirect construction output elsewhere in the economy, totalling $807.9m construction output to the economy during the construction phase.
“After selling Sealite in 2021, I’m proud to be building something that will make it easier for great businesses to flourish – a place where technology companies can grow and thrive on the peninsula,” he said.
“When we started Sealite in a garage in Somerville, there was nowhere purpose-built for a business like ours to grow into. This precinct is designed so the next generation of founders on the peninsula don’t face that same constraint.”
The Planning Minister’s approval follows Mornington Peninsula Shire councillors voting in support of endorsing an independent planning panel’s report regarding the proposed development at their 23 September meeting last year.
Proponent Cr Kate Roper said, “council have been supportive of this proposal which has come before us several times”.
“This will provide jobs for locals and promote the area as a technology hub, which we hope will increase investment in the tech area with further business and employment opportunities. Plans for a much-needed soccer pitch also sit in the plans which will address a shortfall in soccer facilities in Western Port,” she said.
Procter said site works were expected to begin in due course with the plan to capture around three hectares on the northwest corner of the site as a community precinct including recreation spaces/sports facilities, hospitality such as a microbrewery, and potential co-working locations among other non-industrial uses.
As reported by The News, hundreds of residents have signed petitions since 2020 opposing the proposed development, citing increased traffic concerns, environmental impacts, and a missed opportunity to address the region’s housing crisis.
A concerned resident lobby group, which is currently fighting the plans, said the state planning decision had “left residents feeling that their environment and the amenity of their town has been disregarded and dismissed”.
“Once again residents have been blind-sided by council failing to provide transparent and clear communication regarding the outcome of this matter,” a statement from the group said.
“Traffic concerns on Bungower Rd remain in the forefront for residents already struggling with the high volume of traffic. The addition of an industrial development on a rural road will only exacerbate this issue.
“A recent traffic study conducted by council has highlighted a blackspot at the intersection of Bungower and Frankston-Flinders roads. This is in contrast to the reports provided at the state hearing which suggested that the increased heavy vehicle movements would not impact local traffic flow and safety.
“The Somerville area has one the worst koala kill records on the peninsula, which is well within the development radius. However environmental documents submitted stated that there was no significant wildlife within 10km of the site.”
The lobby group’s statement also noted there had been several by-laws including cultural heritage, “that will require much further investigation once a development proposal has been submitted. While the state government have approved the rezoning, to date no current environmental impact studies have been carried out”.
“The existing gas infrastructure has had work undertaken for several months to address a leak. How can this pipeline safely coexist running through an industrial development?”
“Concerned residents remain hopeful that common sense will prevail and any further industrial development will take place in a more suitable area.”
The News raised these community concerns with Procter, who, in response said while there was significant community support for the project, “we also understand that change of this scale can bring community concern”.
“The concerns that have been raised have genuinely shaped the planning framework, and I think the evidence is clear that this precinct will deliver significant net benefits to the peninsula in jobs, infrastructure and environmental outcomes that wouldn’t otherwise be achieved,” he said.
“On traffic specifically, the panel heard expert evidence from two independent traffic engineers, one engaged by council and one by our team. Their findings confirmed that even under a high-growth scenario with the precinct fully developed, Bungower Rd would carry approximately 15,000 vehicles per day, which is well within the road’s capacity of 18,000 vehicles per day”.
“The one intersection that will need attention (Bungower Rd and Frankston-Flinders Rd) has feasible upgrade options that will be worked through as part of the detailed Transport and Movement Plan required before development proceeds.
Procter also noted the rezoning didn’t introduce industrial activity, but changed the types of industry permitted, from heavy port-related uses to lighter technology-based industries “with significantly lower amenity impacts”.
“The panel found the Industrial 3 zone is specifically designed to buffer between heavier industrial land and residential communities,” he said.
“With respect to the environment, the panel confirmed that ecological values have been appropriately assessed, with a detailed Ecological Assessment and Native Vegetation Management Plan required to identify opportunities to retain the highest-value vegetation.”
Hastings MP Paul Mercurio, a key supporter of the plan since 2020, said the Minister’s approval of the planning amendment “clears the way for something genuinely exciting for this community, including employment opportunities and economic benefits”.
“I’ve known Chris Procter for six years and his vision for the technology park has never wavered. This is going to be a real win for the area.”
First published in the Mornington News – 24 March 2026
