Infill logistics property in Melbourne’s south east changes hands for nearly $20m in a sale
and leaseback deal

Leading Australian property fund manager, Centennial, has acquired a large-scale “mid-space” logistics facility in VIC’s Dandenong South, situated on a 17,480sqm site with 9,304sqm GFA.

The facility at 20-50 Waterview Close, Dandenong South, which consists of a flexible and generic building with 9,304sqm of gross floor area on a 17,480sqm site, was purchased by Centennial for $19.8 million. The site offers multiple repositioning and expansion opportunities and is located within the highly land constrained Dandenong precinct.

Dandenong South is a prime location for large-scale businesses seeking industrial space, courtesy of its location just one kilometre west of the South Gippsland Freeway, 35 kilometres south east of Melbourne CBD and 42 kilometres from Port Melbourne.

It was sold by Apack, a leading supplier to the floral industry, on the condition that the buyer enter into a leaseback at settlement, with the lease term being three years.

The off-market deal was negotiated by Scott Braithwaite of Knight Frank.

Mr Braithwaite said the length of tenure and age of the building provided scope for the incoming purchaser to implement a longer term asset refurbishment broadly in line with their investment strategy in the Australian market.

“The property at Waterview Close represents a medium-term repositioning strategy for the incoming

purchaser, where they can invest in the asset and reposition upon the lease expiry.”

“We have seen slowing of transactional volumes following a number of interest rate rises. The debt markets

are volatile and having an impact on the saleability of certain industrial assets.” he said.

“Sale and leasebacks present an opportunity to change commercial terms and lease particulars between vendors and purchasers, providing a large level of liquidity and a win/win outcome for both parties,” he said.