Jones Real Estate and AW Industrial $22M Transaction

Jones Real Estate, in conjunction with AW Industrial, has successfully negotiated the sale of a substantial industrial property spanning four titles in Melbourne’s south-east growth corridor. 

The site, located at 5 Administration Drive, 7 Administration Drive, 6 Evolution Drive, and 8 Evolution Drive, Pakenham, comprises three modern industrial buildings totalling 10,960sqm* on 20,571sqm* of Industrial 1 Zoned (IN1Z) land. The transaction was concluded for $22,000,000 with a 6.50% yield on the fully leased asset.  

The sale was conducted off-market through a competitive private negotiation process, which attracted three offers from both local and offshore investor groups. 

The buyer, a high-net-worth private investor from New South Wales, and a first-time entrant into Melbourne’s industrial investment market, was introduced by Paul Jones of Jones Real Estate, who has recently been involved in all major investment sales across Victoria. Key drivers for the purchase included the property’s prominent location near the Princes Freeway, brand-new improvements, strong rental income, and proximity to the incoming Costco Supermarket. The buyer was unavailable for comment. 

“The vendor purpose-built the facility through construction firm 5 Play for their multiple caravan manufacturing businesses and divested to focus on expansion following an increase in sales volume,” said Max Weinzierl of AW Industrial. 

“Pakenham continues to experience rapid industrial growth as businesses seek alternatives to capacity-constrained inner markets such as Monash, Dandenong, and Casey,” Weinzierl added. 

Paul Jones has developed a strong reputation as a leading agent representing Middle Eastern and Asian private capital in major Victorian investment sales. Recent noteworthy industrial transactions include 2213 Melton Hwy, Melton ($44m); 1 Quarry Rd, Tottenham ($32.80m); 453–455 Hammond Road ($17.50m); 215–225 Heales Rd, Corio ($15m); 30–56 Encore Ave, Somerton ($13.55m); 181 O’Herns Rd, Epping ($13m); 5 Link Road, Pakenham ($9.75m); 203 Browns Road, Noble Park ($9.10m); 75 Acacia Rd, Ferntree Gully ($8.628m); and Monbulk Jam Factory (undisclosed).  

*Approximate