This article is from the Australian Property Journal archive
REAL estate financier MaxCap Group and Troon Group have secured a $400 million development pipeline, acquiring a substantial parcel of existing industrial properties in Cheltenham and a planning approval for a new industrial estate in Clayton South.
The joint venture partners acquired Cheltenham properties, which offer an extensive frontage to Bay Road and Wangara Road, across 5.5-hectares of commercial 2 zoned land.
The holding includes a strong existing income across triple net leases and staggered lease profiles.
David Aiello from CBRE, alongside Daniel Telling from Colliers brokered the Cheltenham deal.
“This is a significant acquisition that we are very proud to have executed on with the Troon Group team – our fifth joint venture together,” said Simon Hulett, head of direct investment at MaxCap.
“The large landholding, flexible zoning and established location lend the site to higher and better uses via retail, childcare, warehousing, and self storage. Leaning into the complexity of the underwriting strategy is where we have been able to unlock value. The ability to de-risk various future uses combined with demonstrable value on the buy attracted strong investor demand.”
Cheltenham as a critical hub for both future population and economic growth by the Victorian State Government.
“[The site] is ideally located close to the proposed new Suburban Rail Loop station, proximity to major road infrastructure, Westfield Southland Shopping Centre and some of Melbourne’s most established residential suburbs like Brighton and Sandringham,” added Hulett.
“We see tremendous scope to create value on the site and we expect the redevelopment to deliver around $200m of product into the precinct.”
MaxCap and Troon Group have also received planning approval from the City of Kingston for their nearby Clayton Industrial Business Park on the site the JV acquired last June.
“We were thrilled with the speed with which we were able to secure the permit and appreciate the efforts of the State Government and local council in supporting the application,” said Tom McInerney, managing director of Troon Group.
“This will allow us to execute on our strategy of creating a brand new 60,000sqm prime-grade industrial estate across nine warehouses to provide much needed new supply into the highly constrained South-East industrial and logistics market. We expect to commence construction in Q4 2024 with anticipated completion in late 2026.”
