The Jreissati family has cashed in on the industrial property boom, selling its 1.69 hectare winemaker’s warehouse for $81 million.
The Port Melbourne facility in Port Melbourne’s industrial hub next to the Yarra River was sold to fund manager Institutional Investment Partners, which manages $64 billion of real estate investments across 25 countries.
The Jreissati family own Bensons Property Group and the Levantine Hill wine estate in the Yarra Valley.
Large areas of land have been recently rezoned in Fishermans Bend to allow for residential development, putting pressure on prices for the remaining industrial-zoned land parcels.
The German fund manager struck a deal on a yield of 3.6 per cent, a new benchmark for the sector with average yields for industrial properties in Melbourne around 4.6 per cent.
The property’s selling agents have called the price paid by Institutional Investment Partners “the sharpest result for a single asset in Victoria from an industrial perspective.”
Chris Jones, Director of Dawkins Occhiuto brokered the transaction, and says the facility is a trophy asset in a very tightly held market.
The off-market transaction was brokered by Dawkins Occhiuto director Chris Jones.
The winemaker’s facility includes a temperature-controlled warehouse and distribution facility, a four-level office, ground-level cafe and a multi-storey car park.
It provides annual returns of $3 million with fixed yearly increases of 2.75 per cent.