EG Snaps Up Two Inner-Urban, Last Mile Melbourne Industrial Assets

EG has acquired two industrial sites in Blackburn and Blackburn North, VIC for $79 million to add to their Australian Core Enhanced Fund.

The large, strategic landholdings are located within the land-constrained eastern suburbs of Melbourne at 15-33 Alfred Street, Blackburn and 6-16 Joseph Street, Blackburn North. The assets provide a combined gross lettable area of approximately 28,020sqm with a blended weighted average lease expiry of 5.52 years leased to a variety of industrial, office and recreational use tenants.

“Urban industrial assets such as these offer good access to high-density catchments and large populations and are playing an increasingly important part in the supply chain for businesses seeking fast access to their customers,” said EG’s Head of Capital Transactions, Sean Fleming. “They just aren’t making any more urban industrial land.”

Sold by Forza Capital, the assets were secured via a post-market approach through CBRE. 

Alfred Street and Joseph Street are, respectively, the 11^th and 12^th assets acquired for EG ACE, which is rapidly deploying capital after a new international equity commitment in April raised the fund to $1.25 billion. EG ACE is an open-ended, diversified fund that seeks to reposition assets to core, targeting office, industrial and retail real estate in Australia.

“The latest ANREV data is showing us that Sydney and Melbourne logistics are the most sought-after asset class across the entire Asia Pacific region so investment success requires a proactive approach on the ground that EG is well equipped to deliver,” said ACE Fund Manager and Executive Director, Chris Pak.