An industrial facility in Derrimut, Victoria, has been sold, the latest in a string of industrial property purchases in Melbourne’s west negotiated by agents of CB Richard Ellis.
An expressions of interest campaign was successfully conducted for 176 Swann Drive, Derrimut, adjoining the new Deer Park Bypass section of the Western Ring road network, in the Gilbertson Industrial Estate.
CB Richard Ellis industrial investments agents, Gab Pascuzzi, Graham Hemingway and Matt Haddon, negotiated the $10.6 million sale subject to a 10 year lease from Bell Total Logistics, on an initial yield of 9.2% per annum.
According to the agents, the campaign for the 15,985 sqm distribution and administration facility on a site of 4.159 hectares produced spirited competition, with multiple offers being received from both the private investor and syndicator purchaser categories.
The land area allows future warehouse expansion of in excess of 6000 sqm, providing the tenant with long term growth options without the need to relocate and giving the purchaser greater investment security and potential upside in future income returns.
CBRE Victorian senior managing director, Matt Haddon, said that a trend is growing of investors flocking back to the industrial property sector following twelve to eighteen months of reduced sales volumes and market uncertainty.
“Investors now recognise that the changed fundamentals in the industrial development market, brought about by the current financial environment, will inevitably result in a substantial decline in new floorspace coming onto the market,” said Mr Haddon.
“This will naturally strengthen key investment fundamentals, such as greater tenant retentions and shrinking vacancy rates, which will lead to long awaited rental growth in the Melbourne industrial market.”
According to Mr Haddon, CBRE’s industrial investments team has transacted ten individual industrial investment sales since June 2009, adding that this is an indication that confidence has now well and truly returned to Australia’s largest industrial market, following a dearth of sales in 2008.
by Mark Bristow : Tuesday, October 6, 2009
