A German investment group has acquired a Melbourne industrial office and warehouse property in a deal worth $81.6 million.
The property at 262-276 Lorimer Street was sold by Bensons Property Group, who had acquired the property in 2014 for $31m.
The purchaser is Institutional Investment Group (2IG) a leading independent platforms for real estate investors in Germany and Europe. The group offer a broad range of services along the value chain of professional real estate investments and are likely to have acted on behalf of a specific mandate.
Dawkins Occhiuto’s Chris Jones brokered the deal on behalf of the Benson Property Group.
The 1.69 hectares site contains a 10,200 sqm temperature-controlled warehouse and production space and a 5,000sqm office area over four floors. The property also includes a café/restaurant.
According to Chris Jones, the property was sold with a commencing annual net rental of just over $3 million including fixed annual rental growth of 2.75 per cent and a new 13 year lease extension to longstanding occupier Rathbone Wine Group. The deal reflects a passing yield of 3.6%.
Situated 4 kilometres from Melbourne’s CBD, the property lies within the 480 hectare Fishermans Bend redevelopment project – Australia’s largest urban renewal project – which is expected to accommodate 80,000 people and create 80,000 jobs by 2050.