This article is from the Australian Property Journal archive
TOBY Krasnostein’s TKCorp has divested a rare infill site in the tightly held Tullamarine to a local owner occupier for $14.3 million.
The sale represented a 51% uplift in value for TKCorp who purchased the asset just 16 months ago in early 2022.
Located at 25 Tullamarine Park Road, around 14km north-west of the Melbourne CBD and within 2km of the airport, the 14,190sqm property is occupied by a vacant 6,285sqm industrial facility with 9,000sqm of factory units–ranging from 80sqm to 350sqm–plus storage and parking for 18 vehicles.
Nick O’Brien and Corey Vraca from Colliers managed the deal on behalf of TKCorp.
“This transaction reflects the significant demand from owner occupiers to be located within the Melbourne Airport precinct,” said Nick O’Brien, industrial director at Colliers.
“The strong result is primarily driven by the scarcity of sale offerings in Tullamarine historically, which has made the Tullamarine market highly sought after. Many businesses want to be located within proximity to the airport due to air freight and the rental premium that private investors can capture in this market.”
“With diminishing greenfield development opportunities in Melbourne’s North, infill sites with functional improvements remain in demand, with this recent sale being the third in just 12 months to achieve a solid result above $1,000 per sqm,” added O’Brien.
TKCorp restructured the lease profile to allow for the permit-approved development to proceed and create a sale option in tandem.
“Our business identified the strategic nature of this asset, and despite investigating our development strategy for the site, the wave of appetite from the occupier market to acquire this asset prompted our decision to de-risk this project and ultimately divest the property,” said Krasnostein.
