This article is from the Australian Property Journal archive
SINGAPORE’S largest listed industrial trust, the S$10 billion Ascendas REIT, has snapped up a facility at Derrimut in Melbourne’s west, in an off-market deal worth $34 million, on a yield of 6.85%.
Dawkins Occhiuto director Chris Jones sold the facility located within the West Park Industrial Estate, on behalf of Abacus, which acquired the asset in late 2013 for $20.95 million.
Located at 169 177 Australis Drive, 16kms west of the city, the property comprises a single level 31,048 sqm office/warehouse on a 56,330 sqm site with 55% site coverage. The high quality warehouse features 12 recessed loading docks, internal clearance of up to 13 metres, and car parking for approximately 220 vehicles.
It was sold fully leased to three tenants with a total passing net income of $2,328,600 and a three year WALE by income.
Jones said the highly flexible configuration would facilitate a split into four tenancies or consolidation into one or two tenancies.
“This is a high quality industrial facility which offered a diverse and secure tenancy profile and solid growth prospects in one of Australia’s most sought after industrial locations and with the potential for further development.
“In summary, it ticked a lot boxes in a market short of quality investment opportunities and the price reflected that,”
Jones said there had been a definite pick up in enquiry for particularly high-end industrial property in 2018 due to a shortage of quality investment stock across the board in commercial property, and the fact that industrial property continued to offer more attractive yields in a commercial market which had seen several years of yield compression.
“Industrial rents have started to see uplift, having been stagnant for years with upward movement in e-commerce, increasing land values and constraint on existing A grade supply, particularly for industrial facilities in excess of 15,000 sqm.” Jones concluded.
Australian Property Journal
