This article is from the Australian Property Journal archive
SELF-storage group Kennards has snapped up the Roxburgh Park complex for $35 million from HMC Capital in an off-market transaction.
The national self-storage operator purchased the 54,140sqm complex, which was one of the last remaining assets held directly from HMC Capital, at a price point reflecting a 52% premium to book valuation as at December 2021.
Peter Tyson, Callum Stenson and Rick Silberman of Savills managed the off-market sale, which reached settled on 30 June.
“Buyers were attracted to the strong underlying real estate fundamentals with over 54,000sqm of land zoned Commercial 2, which allows a variety of retail, warehouse and industrial use options,” said Tyson.
The commercially zoned site includes around 18,000sqm of underdeveloped land and is partially developed with a 11,073sqm former Masters Hardware store plus nursery area and 362 car parking bays.
The building was partially leased to three tenants totalling 1,718sqm with the remaining 9,355sqm vacant.
“The functional large format building and flexible zoning makes it readily adaptable for a wide range of alternate uses,” said Silberman.
Kennard’s is looking to redevelop the site, establishing a mixed-use project comprising self-storage, retail and fast food.
“The market is seeing growing synergy between the large-format retail and industrial sectors, underpinning the alternate use plays emerging from the industrial boom, driven by strong rental growth and yield compression,” added Silberman.
With Kennard’s footprint expanding to nearly 100 location across Australia and New Zealand, 9,000sqm of the building in earmarked for a flagship self-storage facility of more than 1,300 storage spaces.
“Like most capital city markets, Melbourne has experienced massive growth in industrial land values over recent years, which coupled with rapidly rising construction costs, makes the investment case compelling,” concluded Tyson.
