Fife Capital have been revealed as the purchaser of Kauflands’ Merrifield facility in Melbourne’s north.
Kaufland acquired the 28ha site in June 2018 from MAB Corp for $33.6m and commenced work on the construction of a 90,000sqm fully automated, temperature-controlled facility.
The facility was to be Kauflands main distribution centre for the southern states, but a decision to abandon their plans for Australia has resulted in the loss of some $300m.
The facility was being constructed by Vaughan Constructions at a cost of $225m, however the works were likely to include a substantial fitout which did not proceed.
Fife are reported to have acquired the site for just $83m and have entered into a new 10 year lease with DHL over the entire facility. At just $922/sqm of NLA, the acquisition is well below cost enable Fife to grab an immediate uplift in value from the DHL lease.
Earlier this year, Kaufland put 9 other sites on the market. Aventus acquired their site in Epping (vic) for $11.5m, Woolworths picked up East Dandenong for $18.2m, Gordon Corp acquired Richlands, Morayfield and Burleigh Heads for a total of $30m and Oakleigh South was sold for $20.9m.
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