Freestanding Industrial Facility with Upside in Melbourne’s North up for Sale

A fully-leased industrial asset in a core northern industrial precinct of Melbourne is up for sale.

The property at 22-26 Freight Drive in Somerton, around 20 kilometres north of the CBD, consists of a functional 6,791sq m warehousing facility including 5,608sq m of warehouse space and 1,183sq m of office and storage space, situated on a generous 1.5-hectare allotment.

The multi-tenanted investment is underpinned by a diverse income stream of $656,942 per annum with significant reversion potential of more than 30%. Current tenants include DB Global Logistics, Melbourne Commercial Group, Mader International and Oceania Universal.

It also has future development potential, with surplus land of around 3,500sq m on the southern portion of the side.

The asset is being taken to the market via an Expressions of Interest campaign run by Knight Frank agents Daniel DeSanctis and Thomas Dodd.

Mr DeSanctis said the industrial facility was generating strong demand in the early stages of the sales campaign.

“Investors are drawn to the diverse income stream offered by the fully-let property, as well as the added advantages of the ability to unlock immediate and long-term rental uplift and the potential for development upside,” he said.

“The property has a high underlying land value given its expansive 1.5-hectare allotment.

“The warehousing building on the site is very functional, with multiple on-grade roller door access, multiple loading areas, a generous hardstand component and quality office accommodation.”

Mr Dodd said 22-26 Freight Drive was in a core industrial and logistics location in Melbourne’s northern corridor, with excellent access to major arterial roads providing connectivity through Victoria and Australia’s eastern seaboard.

“The property has excellent access to surrounding major road networks including the Hume Freeway and M80 Ring Road,” he said.

“The location is also strengthened by several nearby infrastructure projects including the soon-to-be completed North East Link and the Somerton Intermodal Terminal.”

The Expressions of Interest campaign for the property will close at 4pm (AEST) on Tuesday, May 29.