CBRE says Cabot Properties, a US private equity real estate firm has bought a 93,074 sqm site in Campbellfield for $41 million.
The investment management company says its agents Daniel Eramo and Joe Brzezek brokered the off-market transaction on behalf of a vendor associated with the Andrianakos family, who it says has recently obtained 50 per cent of the Colonnades Shopping Centre from Perron Group.
“The acquisition complements our existing portfolio and directly aligns with our strategy to develop high quality, sustainable logistics assets in core infill locations,” Jonathan Herb, Director of Investments at Cabot, says.
“It is rare to be able to create an estate of this scale and quality in such a core infill location,” he adds.
“Our recent experience in similar markets demonstrates there is a lack of high-quality options for tenants in these locations with all our developments leasing well ahead of PC.”
CBRE notes the 131-149 Somerton Road site will be Cabot’s fifth in Australia alongside two projects in Truganina and two projects in Melbourne’s southeast.
It says Cabot will transform the site into an A-grade logistics estate with an estimated on-completion value of $130 million.
“Large-scale infill development sites within Melbourne’s core northern industrial precinct are extremely rare,” Daniel says.
“With this purchase, Cabot is poised to capitalise on the rising occupier demand in the market, and capture future rental growth through the development of its new warehouses,” he adds.
CBRE says the estate will consist of 55,000 sqm of lettable area across three buildings, catering to tenancies from 4000 sqm up to 45,000 sqm.
It adds that it is approximately 18km from the Melbourne CBD and is in the heart of the city’s northern industrial market.
It says the property is easily accessible from Cooper Street, Sydney Road, the Hume Freeway, the Metropolitan Ring Road, and the Tullamarine Freeway.
Additionally, CBRE notes the development will provide a much-needed opportunity for occupiers in what it says is a tight market, with northern Melbourne’s industrial vacancy rate set to continue to fall towards 0.5 per cent in the coming weeks.
For more information on CBRE, click here.