Melbourne development group Pellicano have sold an industrial facility in Ravenhall in an off market deal worth $17m.
The 2.3ha property at 11-17 Business Park Drive consists of two warehouse buildings covering 12,880sqm.
The first 8,500sqm building (including 500sqm of office) was completed in 2015 and was leased to BTI logistics for $60/sqm pa on a 7 year lease. The second building of 4,380sqm is split into two tenancies, one also leased to BTI and the second also recently leased to Rodeca providing a WALE across the property of 3.1 years.
The property was sold on a 5.8% yield, reflecting a rate of $1,319/sqm of NLA.
The property forms part of the Obis Business Park, a joint venture between Pellicano and MAB Corporation, and one of the few locations in Melbourne West, capable of securing large scale logistics users.
A recent JLL report suggested that there is only 4.5 to 7 years of serviced industrial land in Melbourne's West and that further supply is likely to be 15 years away due to servicing & environmental constraints. Most of this future industrial land is in Ravenshall and Truganina however Water supply to these areas is non existent and expensive.
As a result land values and rents for remaining land is escalating. Over the past 12 months, land values for 1 ha lots have risen by 28% to circa $450/sqm and rents have risen over 4.8% to $79/sqm pa.
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