Strategic Last Mile Logistics Portfolio for Sale in Noble Park

The Noble Park Portfolio offers strong fundamentals and significant rental upside, situated within one of Melbourne’s most tightly held logistics precincts.

Colliers is pleased to bring the Noble Park Portfolio to market for sale. The portfolio comprises three core plus industrial and logistics assets strategically located within one of Melbourne’s most tightly held last-mile logistics precincts. The assets are underpinned by strong fundamentals, offering an excellent value-add proposition.

The Noble Park Portfolio includes three standalone assets with a total building area of 10,77 sqm and a combined land area of 19,013 sqm. All properties are currently leased, providing a net passing income of $967,995 per annum and boasts a short WALE of 2.6 years by income, presenting significant near-term rental upside.

Colliers agents Daniel Telling, Gordon Code, Sam Hibbins, and Nicholas Simon are managing the expression of interest campaign. “This is an ideal opportunity to capture the exceptional rental growth experienced in Melbourne’s South East industrial sector, which is outperforming other submarkets,” said Colliers National Director Gordon Code.

“The portfolio offers 100% interest in the freehold properties, located within Melbourne’s tightly held Noble Park commercial/industrial precinct. The assets are perfectly positioned for final mile distribution, with limited future supply available to benefit from the surrounding residential catchment areas.”

Daniel Telling, Colliers Industrial and Logistics Capital Markets Director, commented, “The Noble Park Portfolio represents a unique opportunity to acquire a core plus investment portfolio with ultimate flexibility. In particular the ability drive investment returns through not only rental growth, but the ability to reposition, redevelop and amalgate assets is a rare proposition within this precinct.

Noble Park is an established and land-constrained industrial precinct, with only 51 industrial offices/warehouses sized between 2,000sqm and 5,000sqm. Surrounded by residential catchments, Noble Park benefits from excellent access to a local workforce, with many businesses entrenched in the region due to their staff living nearby.

The precinct remains an integral industrial suburb within Melbourne’s South East, comprising a rich history of manufacturing and logistics due to its proximity to Melbourne’s demographic centre.

Colliers Industrial Associate Director Sam Hibbins added, “Melbourne’s South East continues to outperform all other industrial submarkets in rental growth, approximately 11% year-to-date. Investors have been securing assets underpinned by a short WALE similar to the Noble Park Portfolio, seeking to capitalise on the industrial rental growth.”

The Melbourne Industrial and Logistics investment market demonstrated robust performance in the second quarter of 2024, with transaction volumes surging to $915.7 million, including assets transacted within the Goodman portfolio. Cumulative sales volumes for the first half of 2024 reached $1.21 billion, representing a 26% increase compared to the same period in 2023.