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Northern Melbourne industrial property sells

Tullamarine industrial property

Colliers’ Nick O’Brien and Corey Vraca negotiated the deal of a Melbourne-based industrial property on behalf of TKCorp with a local owner-occupier who bought it for $14.3 million.

Under Toby Krasnostein, the founder of TK Corp who purchased the 25 Tullamarine Park Road site in early 2022, it increased by 51 per cent in value over 16 months.

“This transaction reflects the significant demand from owner-occupiers to be located within the Melbourne Airport precinct,” Colliers’ Industrial Director Nick O’Brien says.

“The strong result is primarily driven by the scarcity of sale offerings in Tullamarine historically, which has made the Tullamarine market highly sought after.

“Many businesses want to be located within proximity to the airport due to air freight and the rental premium that private investors can capture in this market.”

Colliers notes the 14,190 sqm property comprises a 6285 sqm industrial facility, offered with vacant possession at the date of purchase.

“With diminishing greenfield development opportunities in Melbourne’s North, infill sites with functional improvements remain in demand, with this recent sale being the third in just 12 months to achieve a solid result above $1000 per sqm,” explains Nick.

TKCorp restructured the lease profile to allow for the permit-approved development to proceed and create a sale option in tandem.

“Our business identified the strategic nature of this asset, and despite investigating our development strategy for the site, the wave of appetite from the occupier market to acquire this asset prompted our decision to de-risk this project and ultimately divest the property, adds Toby.

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