This article is from the Australian Property Journal archive
AN A-grade industrial asset in Melbourne’s western suburb of Altona has sold for $14,600,000 on a 4.8% yield.
The 6,733sqm distribution centre at 48-54 Burns Road, around 13km south-west of the CBD, is fully leased to workwear manufacturer Portwest Pacific, who have committed to a five-year term generating a passing net income of $706,955.
Daniel Telling, Nick Saunders and Hugh Gilbert from Colliers, alongside transaction advisor David O’Callaghan from O’Callaghan Commercial, managed the sale to a private investor.
“The asset was purchased new in 2011 as a purpose-built design & construct for TTA Australia – a subsidiary of the Toyota Motor Corporation – for $7,200,000 for a trust syndication and was 100% subscribed ahead of settlement,” said O’Callaghan.
The facility occupies a 11,575sqm infill land holding, presenting potential value-add investment opportunities, and is strategically positioned to benefit from several government infrastructure projects.
“Melbourne’s West industrial and logistics market has been one of the most active in the country over the past three years, supported by record levels of infrastructure investment and diminishing land availability, which has reinforced unprecedented rental growth over the past three years,” said Telling, manager of industrial capital markets at Colliers.
“More broadly, the market has been a major benefactor of the structural tailwinds in the sector since 2020, with retailers and transport and logistics groups looking to expand their footprint to cater for the rapid growth of e-commerce.”
The property’s positioning in the tightly held Altona industrial and logistics precinct offers access to all major including the Princes Freeway, with connectivity to the Port of Melbourne and the Melbourne Airport.
“Melbourne’s West logistics sector continues to benefit from strong structural tailwinds, leasing to sustained high occupancy levels. With a limited supply of available warehouse space for lease, each market continues to see record levels of income growth which in turn has largely offset yield expansion,” said Saunders, national director of Colliers Industrial.
“Melbourne’s West has been the dominant submarket across the city, with its popularity from occupiers stemming from its proximity to the Melbourne CBD and access to major arterial roads. Similarly, its ability to provide groups with scale at an affordable price compared to other markets has lured groups from other markets across Melbourne.”
The new owner, who has existing business links to the Altona region, was represented by Jeremy Gruzewski, director of agency at Aston Commercial.
