US private equity real estate firm Cabot Properties has purchased a 93,074sqm landholding in Campbellfield for $41 million.
The acquisition, located at 131-149 Somerton Road, will be Cabot’s fifth in Australia alongside two projects in Truganina and two projects in Melbourne’s south east.
Cabot will transform the site into an A-grade logistics estate with an estimated on-completion value of $130m.
The estate will consist of 55,000sqm of lettable area across three buildings, catering to tenancies from 4,000sqm up to 45,000sqm.
CBRE’s Daniel Eramo and Joe Brzezek brokered the off-market transaction on behalf of a vendor associated with the Andrianakos family, who has been active in the market with the recent acquisition of 50% of the Colonnades Shopping Centre from Perron Group.
“The acquisition complements our existing portfolio and directly aligns with our strategy to develop high quality, sustainable logistics assets in core infill locations,” Jonathan Herb, Director of Investments at Cabot, said.
“It is rare to be able to create an estate of this scale and quality in such a core infill location. Our recent experience in similar markets demonstrates there is a lack of high-quality options for tenants in these locations with all our developments leasing well ahead of PC.”
Approximately 18km from the Melbourne CBD in the heart of the city’s northern industrial market, the property offers easy access to Cooper Street, Sydney Road, the Hume Freeway, Metropolitan Ring Road and Tullamarine Freeway.
The development will provide much-needed opportunity for occupiers in a tight market, with northern Melbourne’s industrial vacancy rate set to continue to fall towards 0.5% in the coming weeks.
“Large-scale infill development sites within Melbourne’s core northern industrial precinct are extremely rare,” Mr Eramo said.
“With this purchase, Cabot is poised to capitalise on the rising occupier demand in the market, and capture future rental growth through the development of its new warehouses.”