This article is from the Australian Property Journal archive
ALTHOUGH commercial property yields have expanded, a private family has sold Truganina industrial investments for over $30 million on sub 4% yields, with new kid on the block AND Property finding an undercurrent of patient investors.
AND Property’s Ricardo Cappelletti and Bryce Pane handled the sale of 1 – 23 Banfield Court Truganina in Melbourne’s west, for $20.4 million, on a sharp yield of 2.49%.
The agents said the campaign attracted over 89 enquirers and the yield achieved was a landmark for the industrial market.
The property was sold with a tenancy in place, leased to Punjab Roadtrains Pty Ltd (Auswide Transport Solutions), commencing July 1 2023 on a three-year term with no further options.
Comprising a total site area of 29,825 sqm with over 128 metres of frontage to thoroughfare Leakes Road, it is improved by a 2,208 sqm office/warehouse and 12,500 sqm sealed concrete yard, with a low site coverage of 8.4%.
The warehouse has a springing height 8m and four on grade container height roller doors.
AND Property also handled the sale of 13 – 17 Jessica Way Truganina for $10 million, achieving a yield of 4.03%.
The property was purchased Foresite Group Pty Ltd, a civil construction and transport and logistics training provider that trains over 5,000 students per year.
The property comprises a 1,275 sqm warehouse and 780 sqm office, set on a 11,900 sqm site, providing a 17.2% site coverage.
The high clearance workshop style facility has 12.5-tonne gantry crane, secure yard and six roller doors as well as a wash bay and two-level corporate office.
It was sold with a lease to CTR Truck Sales Pty Ltd (Scully RSV), expiring 28 November 2024 with two, 3-year options with no market review.
Pane said the both properties had low site coverage.
“Despite the sharp yield, it is worth noting that the replacement cost for this asset would be considerably higher than the sale price achieved.
“This speaks to current opportunities available for those with patient capital that can hold a tighter yield on an underlet asset, there is value to be found in properties where leases were agreed in an industrial rental market before substantial rental growth had been achieved,” said Pane.
The transactions have put a feather in the cap of agents AND Property, the new kid on the block. Founded in January this year by ex-CBRE agents Ricardo Cappelletti, Ben Quennell and Bryce Pane, the specialists have a further strong pipeline of sales of over $70 million under due diligence.
Their early success has not gone unnoticed, AND Property was recently appointed exclusive agents to sell the last ever release at the Axiom Estate in Truganina.
All lots including 62 Doriemus and 2 Pauljoseph Way, offer locational advantage and unparalleled redevelopment potential for owner occupiers and developers alike.
The four individually titled lots range from 7,237 sqm to 12,640 sqm, comprising a total land area of 39,785 sqm, and three street frontages if bought as one.
“This land release represents the last ever release at the Axiom Estate which has been held by a private family for over 60 years,” the agent said.
