This article is from the Australian Property Journal archive
AUSTRALIAN Unity is looking to offload industrial properties in Melbourne’s west and south east, with high green credentials and long-term leases totalling $1.7 million per year.
The combined size of the properties – at 2-10 Bliss Court in Derrimut, and 91-97 Woodlands Drive in Braeside – tally more than 31,000 sqm, including 14,728 sqm of building improvements.
They are being offered for sale through JLL as a portfolio or individually.
Together they generate more than 1.4 kW hours of solar energy annually, alleviating grid demand and offering buyers scope for reducing carbon emissions.
“The properties couldn’t be better placed within two of Melbourne’s premium industrial and logistics precincts, near large residential populations,” said JLL’s Ben Hegerty.
“The assets are perfectly positioned to benefit from the continued focus on last-mile delivery and growth in e-commerce. Their green credentials are a further standout.”
The properties offer long-term income security with a combined weighted average lease expiry of 12.8 years and net passing yearly income of more than $1.7 million, or $118 per sqm. Both sit within precincts with vacancy levels of less than 1%, and rental growth in excess of 20% in 2022.
Situated 16 kilometres west of the CBD, the Derrimut property is leased to Concept Logistics until August 2032 at $1.02 million per annum and $105 sqm. It offers access to the Western Freeway, Western Ring Road and Westgate Freeway and is set to benefit from infrastructure projects including the Westgate Tunnel project.
It has a 620 kW solar system generating an estimated 796,000 kW hours of clean energy annually.
The Braeside property is leased to Flavour Makers Australia until September 2041 at $694,000 per year, at $142 sqm. It is near Dingley Bypass, Eastlink, Nepean Highway and Mornington Peninsula Freeway. Its 440kW solar system generates an estimated 575,000 kW hours of clean energy each year.
“With lease expiries of 9.2 years and 18.2 years these properties provide investors with long-term income security and strong running yields,” JLL’s Jack Kelliher said.
First-round bids in the expressions of interest campaign are due Wednesday, 26th July.
