This article is from the Australian Property Journal archive
BOUTIQUE developer Up Property Group has added a prime industrial site its property portfolio, acquiring the securely leased Bayswater site for $17.5 million from Brix Property Group.
Located at 836 Mountain Highway, around 27km east of the Melbourne CBD, the 18,700sqm site is occupied by a 8,500sqm facility with an existing 11-year lease in place to manufacturing tenant Rosebank Engineering.
Walter Occhiuto and Andrew Dawkins from Dawkins Occhiuto, alongside Joel Scully from JLL, from managed the sale via an expressions of interest campaign.
The industrial zoned property was initially purchased by Brix in a joint venture with Costa Asset Management three years bank.
“Brix originally purchased the site with the intent to redevelop the property following the end of the lease term with the tenant, but when Rosebank Engineering sought a 10-year lease extension Brix made the decision to sell the property and recycle the capital into other new acquisitions in Queensland and Victoria,” said Adam Brick, managing director at Brix Property Group.
“We are pleased to see Up Property take up stewardship of this asset given Up’s high level of experience in acquiring, managing and ultimately repositioning key industrial, commercial and residential assets.”
Up Property is planning to landbank the site for future development, with the property to add to its current commercial and industrial holding portfolio.
“This acquisition slots perfectly into our investment strategy,” said Marcus Jankie, general manager at Up Property.
“The long-term lease ensures secure income growth, while the substantial landholding presents significant redevelopment potential in one of Melbourne’s core manufacturing precincts.”
“Up Property is in the market to continue to build our portfolio across all asset classes and this year we have secured a total of $38million in purchases both here in Victoria and interstate, with end values that should exceed $85million.”
The tightly held industrial location drove a competitive campaign process, enhanced by the extensive dual frontage to Mountain Highway and Dunlop Court and the triple net lease providing a holding income of $594,104 p.a.
Recent Melbourne industrial deals have seen Aware Super and Barings’ acquire Austrak Business Park in Melbourne for around $600 million and PGIM Real Estate and Elanor Investors jointly purchase the 19-hectare Woolworths Distribution Centre site in Victoria for around $200 million.
While this week, Troon Group was been given the greenlight on its $23 million architecturally designed warehouse unit development in Altona North in Melbourne’s west.
