This article is from the Australian Property Journal archive
Toll Holdings has sold a portfolio of industrial assets in Melbourne to Stockland for $58 million, at an initial yield of 7%.
The portfolio comprises three distribution centres located in Altona, in Melbourne’s West. The three high quality distribution facilities constructed within the past five years on a 13-hectare site have a total gross lettable area of 52,300 sqm plus 9,100 sqm of awnings.
The buildings have substantial hardstand areas and some expansion potential, with current site coverage at 46%.
The properties are currently leased to Toll Holdings with an average lease expiry of 6.8 years. Toll uses one of the properties for its IPEC parcel distribution centre, while the other properties service high profile contracts with Nike and Arnott’s.
The purpose built IPEC property was developed by Toll as a cross docking facility with 94 raised loading docks servicing distribution to the Melbourne metropolitan area and interstate. The property has extensive tenant fit-out and state of the art handling systems.
Stockland’s chief executive of commercial and industrial division Steve Mann said the three properties further consolidates Stockland’s position as a major player in the strongly performing Melbourne industrial market, with over $286 million invested in the market.
He added that this acquisition follows Stockland’s purchase of six industrial buildings in Melbourne’s northern and southeastern precincts for $120 million in August.
“This acquisition represented an opportunity to purchase high quality assets within the Toll Business Park of nine buildings purpose built to Toll’s specifications. We were particularly attracted to the IPEC cross dock, which is one of only two facilities of this size in the country,” Mann said. “The properties are strategically located in Melbourne’s western industrial corridor, with excellent access to the Citylink and Metropolitan Ring road network and close proximity to transport infrastructure, including the Port of Melbourne.”
Following this transaction, Stockland’s industrial and office park portfolio will be valued at over $1.1 billion.
By Adam Parsons
