This article is from the Australian Property Journal archive
ISPT has continued to build one of Australia's most diverse property portfolios with the purchase of the Central West business park in Melbourne for $137 million.
ISPT’s chief executive Daryl Browning said following the acquisition, the ISPT Core Fund has almost $6 billion diversified across 100 properties.
“The acquisition is a significant investment in the future of Melbourne’s inner west and a demonstration of ISPT’s belief in the strongly performing Victorian economy.
“It gives us good exposure to both the industrial and retail sectors on a scale hard to find in the current market,” Browning continued.
Jones Lang LaSalle directors Simon Rooney and James Kaufman negotiated the sale on behalf of the Giannarelli Family.
They said the sale was a strong result for both parties, with the vendor achieving a solid outcome, and ISPT, the opportunity to add significant value to the property in coming years.
“ISPT has purchased a substantially stabilised long term investment with development upside to enhance the income yield of the asset, while the vendor has received a excellent result from the property that has been developed over a long period of time.
Central West is mixed use commercial property, situated on the corner of Ashley Street and South Road, only eight kilometres west of the Melbourne CBD.
“The industrial business park is 99.7% leased and substantially complete, with an additional 18,158 sqm due to be completed in early 2008 and a town planning permit existed for the creation of a further 31,758 sqm of industrial space,” Kaufman said. “This is no passive investment and it offers the rare opportunity to hold development land that is underpinned by strong income flows from national tenants,”
Rooney said the shopping centre component offered a unique and diversified offer incorporating traditional retail, bulky goods retail, food, office and service usages over a total gross lettable area of 21,741 sqm.
The shopping centre is anchored by a Coles and Aldi supermarket, the Warehouse discount variety store, 28 specialty shops, four kiosks plus various bulky good, office and food tenants.
The retail centre occupies a highly accessible, major site of approximately 6.220 hectares with onsite parking for 850 vehicles.
The retail parcel also includes a 3,566 sqm, two level office building anchored by National Australia Bank.
“Central West Shopping Centre benefits from its outstanding location, which features dual frontages to major roads, South Road and Ashley Street and adjoins a major business park in a densely populated and established trade area comprising approximately 38,040 people.” Rooney concluded.
Australian Property Journal
