German Group moves on Port Melbourne Industrial

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.

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About Warwick P

Warwick has over 25 years of property investment and management experience. Principally responsible as Managing Director for Capital Management Australia and Joint Managing Director for Chauvel Capital Partners and Editor of Australian Property Markets News.

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