Perth based GM Property Group has listed two Melbourne industrial & logistics investments likely to fetch in the order of $90 million in an Expressions of Interest campaign through Melbourne agency and industrial market specialist, Dawkins Occhiuto.
According to Dawkins Occhiuto Director, Chris Jones, who is marketing the assets with colleague Ben Hegerty, the urban infill properties offer a combined 6.2 year WALE with a net income of approximately $3.77 million, large landholdings in historically robust locations, and further future expansion or redevelopment potential (STCA).
“These properties provide very sound investment fundamentals in terms of lease profile, location, and supporting infrastructure. Their values are heavily underpinned by land, and they offer further potential to add substantial value over time.
“They come to market at a time of strength for the industrial and logistics sector with occupier demand at record levels and vacancy at all-time lows. Appetite for land seems insatiable and this is placing significant upward pressure on rents,’’ Mr Jones said.
The assets, which will be sold in one line or individually, include a container handling facility at Tottenham and a business park at Mulgrave returning $1.3 million and $2.47 million per annum respectively.
Located within the Monash Technology Precinct and close to the Monash and Eastlink Freeways, the Mulgrave asset – the multi-tenanted Enterprise Park – comprises five freestanding office/warehouses over nearly 20,000 square metres, fully leased with a 5.5 year WALE on a high exposure 3.8 hectare site.
Mr Jones said the park offered significant future redevelopment potential, facilitated by its flexible zoning and 560 metres of frontage to three streets including Springvale Road.
“Enterprise Park represents an exceptional investment opportunity with a secure lease profile and outstanding future redevelopment upside, in a great location. The asset has enjoyed recent leasing success and is undergoing more than $3 million in capital upgrades,’’ he said.
Situated in Melbourne’s inner west and occupying one of the closest industrial locations to the Port of Melbourne and Melbourne CBD, the 4.07 hectare, 1 Quarry Road, Tottenham, property comprises 8,091 square metres of warehouse accommodation fully leased to Cargo Freight Services on a new eight year lease.
Mr Jones said the property’s key attributes included the new long-term lease, the under-developed landholding with just 21 per cent site coverage, and its western industrial heartland location with its exceptional transport links.
“The inner western market has been keenly sought in recent times as investors look to exploit growth trends in the urban logistics space in a location which boasts transport access which is second to none nationally,’’ Mr Jones said.
Mr Hegerty said the increasing scarcity of quality infill product was reflected in strong investment demand and ongoing yield compression.
“Diminishing land supply and a real focus on urban logistics and last mile strategies make infill investment assets a prized commodity. We expect core plus opportunities such as these to be well received by the market,’’ Mr Hegerty said.
The properties will be sold in one line or individually by Expressions of Interest closing Thursday, June 9 at 3pm.