A private investor has snapped up a distribution centre in Melbourne’s west for more than $20 million.
In a deal negotiated by Colliers’ Jack Kelliher, Nick Saunders and Hugh Gilbert a private investor has acquired a 9265 sqm distribution centre in Derrimut for a record $20.85million. The transaction has a record yield of 3.3 per cent and a capital rate of $2250.40 per sqm.
The modern building, which sits on a 21,290 sqm site, is occupied by Cryer Malt – the largest distributor of craft-brewing ingredients in Australia and New Zealand.
Jack Kelliher says the property was snapped up prior to the sales campaign commencing, at a record price due to the quality of the asset and covenant on offer.
“Multiple institutions put forward expressions of interest and submitted offers pre-campaign,” he says. “The asset really captured the attention of the ever-growing pool of buyers looking to invest in the industrial and logistics market.
“The sale represents a record for the industrial and logistics sector in Victoria, as it represents the sharpest yield to date. There is insatiable demand for securely leased industrial investments that are well located within core markets throughout Victoria.”
Situated in an established western industrial precinct, the Derrimut property offered unparalleled arterial linkages, a vast residential catchment and connectivity with surrounding commercial precincts.
In the first half of 2021, more than $3.5 billion worth of industrial assets traded in the Melbourne market. Almost $2.1billion was sold in 2020.
“Led by a significant weight of capital from both domestic and offshore groups, industrial yield compression across Melbourne has averaged 115 basis points over the past 12 months within the prime market,” Jack says.
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