This article is from the Australian Property Journal archive
PERTH-based GM Property Group is expecting $90 million for two suburban Melbourne industrial urban infill properties.
The assets, offered in one line or individually, include a container handling facility in Tottenham and a business park at Mulgrave.
Together, they offer a combined weighted average lease expiry (WALE) of 6.2 years and a yearly income of about $3.77 million.
The multi-tenanted, fully occupied Mulgrave asset, Enterprise Park, is located in Melbourne’s south eastern Monash Technology Precinct and close to the Monash and Eastlink Freeways. It has five freestanding warehouses and office buildings over nearly 20,000 sqm, with a 5.5-year WALE on 3.8 hectares of land.
According to Dawkins Occhiuto’s Chris Jones, who is marketing the assets with colleague Ben Hegerty, the park offers significant future redevelopment potential facilitated by its flexible zoning and 560 metres of triple frontage including to Springvale Road.
He said the asset has enjoyed recent leasing success and is undergoing more than $3 million in capital upgrades.
The other property is a 4.07-hectare site at 1 Quarry Road in the inner western suburb of Tottenham. It has 8,091 sqm of warehouse accommodation fully leased to Cargo Freight Services on a new eight-year lease.
The under-developed landholding has just 21% site coverage.
“The inner western market has been keenly sought in recent times as investors look to exploit growth trends in the urban logistics space in a location which boasts transport access which is second to none nationally,” Jones said.
“These properties provide very sound investment fundamentals in terms of lease profile, location, and supporting infrastructure. Their values are heavily underpinned by land, and they offer further potential to add substantial value over time.”
For the second year running Melbourne led the country with the highest proportion of industrial sales volumes, according to JLL, accounting for 38% of the national total.
“Diminishing land supply and a real focus on urban logistics and last-mile strategies make infill investment assets a prized commodity,” Hegerty said.
CBRE recently reported that Melbourne’s record low industrial vacancy rate will likely stay under 2% over the coming two years, leading to double-digit growth in land values as zoned land supply shrinks.
Expressions of interest close 9th June.
