This article is from the Australian Property Journal archive
ARROW Capital Partners has taken advantage of surging industrial values, doubling its money in just two years on a Dandenong South industrial that has sold for $27 million.
Spanning 29,700 sqm, the 34-36 Commercial Drive site is improved by three standalone buildings, presenting the chance to operate the site as a standalone business or multi-tenancy estate.
Arrow Capital Partners bought the asset in 2021 for $13.68 million with initial plans to redevelop the site into a brand-new business park.
“The sale represents the largest brownfield industrial sale in Melbourne’s south east in the last 12 months, situated within a market that stands out from other industrial markets around Melbourne due to the lack of future supply with available land,” said Colliers’ James Stott, who managed the sale with Charlie Woodley.
“The low vacancy is creating systemic issues for a large section of the market, and when these rare opportunities come to market, we more often see fierce competition from owner-occupiers, private investors and developers who can all employ different exit strategies for the site,” Stott added.
Arrow Capital Partners and US investment firm Starwood Capital are currently shopping around a $280 million-plus last mile industrial portfolio that has assets in Sydney’s Smithfield in Port Botany, Rutherford in the Hunter Region, and multiple assets in Melbourne’s Cheltenham.
Nearly 70% of net passing income is weighted to Sydney, with a number of staggered leases that would allow a new owner to capture the massive surge in rents seen across the country.
The properties account for a combined 110,000 sqm of warehousing and 300,000 sqm of land.
