This article is from the Australian Property Journal archive
CANBERRA-based Argus Property Investments has made a foray into Melbourne, snapping up a massive 70,000 sqm site in Brooklyn, just 8km from the Port of Melbourne and 10km from the CBD.
The Canberra group has bought the new $25 million container handling hub.
It was purchased on an initial yield equivalent to 6.5%.
It was sold with a lease to Oceania Container Services, the Australian subsidiary of Chinese shipping behemoth COSCO, which has a 15-year term with options to extend.
The purpose built facility at 28 Jones Rd has a 50,000 sqm concrete hardstand capable of storing 8,500 containers, a container service bay, a warehouse, office and workshop.
Argus said it was “attracted to the investment by a diminishing stock of industrial land in the area, as traditional industrial users relocate from the immediate Port area, driven by planning changes permitting multi storey residential redevelopment and soaring land values.
“The impact of these changes in the first ring of industrial suburbs from the Port has led, and will continue, to drive significant increases in market value, with big blocks like this becoming ever more scarce and expensive, said a spokesman for the group.
“This is the first acquisition in Melbourne for Argus, despite investigating a number of opportunities over the last four years, as in the current overheated market it says it has been extremely difficult to find assets meeting its stringent investment parameters,”
Formed in August 2012, Argus’ current directors and shareholders are Jim Shonk – the former managing director of Colliers ACT and Fellow of the Australian Property Institute; Richard Swinbourne – principal of Capital Valuers and Life Fellow of the API; Ottmar Weiss – former group head of equity markets at Macquarie Bank and Robert Terzi – former state manager property Finance with St George Bank and Argus’ chief operating officer.
The group represents some 50 mainly Canberra based investors, managing on their behalf some notable Canberra properties, including the Belconnen Bunnings, a Barton Federal Police College and the former Home Hardware in Gungahlin, about to undergo redevelopment.
The spokesman for the group said this latest purchase is in keeping with its conservative investment philosophy of acquiring strategically positioned properties on big sites, with underlying redevelopment potential, secured by long term leases to blue chip tenants.
“The freehold title on offer in Sydney and Melbourne markets means as that redevelopment potential draws closer, it drives capital appreciation which will accrue entirely to unitholders, including the directors of Argus themselves, who invest personally in each asset.
“The group will continue to pursue opportunities in those marketplaces and in Canberra.” Argus said.
Australian Property Journal
