This article is from the Australian Property Journal archive
A PRIVATE family has sold a 64,000 sqm industrial landholding in Keysborough in Melbourne’s south-east after more than 30 years of ownership.
Melcorp’s Paul Jones negotiated the sale of the 68-80 Kirkham Rd property, for $15 million on a yield of 11%.
The conjunctional agent was Savills’ Lynton Williams. The property was sold to a private investor advised by Osprey Property Group.
Jones said 6.43ha property was a rare offering as it is one of the largest industrial sites to come on the market in the past five years.
Jones said the expression of interest campaign received six offers from a mix of owner occupiers, private investors and developers.
“We did not go to the second round after receiving the strong offers and it was sold with a short term settlement of 60 days.
“I fielded over 100 enquiries, ultimately due to the location of the offering. Proximity to Eastlink is a major driver for occupiers in the south eastern industrial precinct.
“The property was developed in the 1980’s and kept in the family until this sale. The original owner sold his business to Venture (the tenant) in 2003 and retained the property as an investment. The original owner Jim (Dimitrije) Glavinic and his wife Milena Glavinic passed away in 2014 where their daughter Dancha Ziatis took control of the property, Jim and Milena built the site in the mid 1980’s,” he added.
“Following this sale, there is only one large serviced industrial block in the market and that is a 1.5ha property in Pellicano’s estate.
“So it is very rare for a 6.5ha property to come on the market,” Jones continued.
The property was sold with a short term lease until December 2017 to Venture DMG Pty Ltd, a subsidiary of Venture Global, at a total net income of $1.584 million p.a.
Despite the short-term lease expiry, Jones said the property has already received interest from tenants, including groups who want to occupy the entire facility.
The property is currently improved by a 32,738 sqm warehouse and 130 car parking spaces.
Australian Property Journal
