Australia, Companies, Industrial Property, Logistics, News

Rare transport and logistics site leased

West Footscray

Colliers’ Stephen Ryan and Charlie Woodley with CBRE have leased a rare transport site on behalf of Greystar Australia, achieving a strong annual rental of more than $1.5 million.

Greystar, well known for its build-to-rent development and management expertise, expanded its local and international platform in the last two years with the addition of a dedicated strategy focusing on industrial and logistics investments.

The acquisition of the West Footscray property was its fifth investment on Australia’s eastern seaboard, and a project complementing its other acquisitions in Sydney and Brisbane.

“The rare low coverage offering was particularly interesting to a business in the transport and logistics sector,” says Colliers’ Associate Director, Stephen Ryan.

“We identified prospective occupiers who saw value in the inner west location with proximity to the Port of Melbourne and were able to achieve a rental uplift of over 40 per cent on the existing areas compared to the previous lease that was in place at the time of Greystar’s acquisition.”

Colliers notes the deal comprised a 2.1-hectare corner site on 36-38 Roberts Street, West Footscray, including a 7821 sqm building, which accounts for 38 per cent of the total site area, has been secured by Paddock to Port on a five-year lease with options until 2033.

“While leasing demands have subdued, we were confident that we would achieve a fantastic outcome for Greystar due to key fundamentals such as the property’s prime infill location and the ongoing supply constraints, which has resulted in a vacancy rate being sub 0.9 per cent accounting for a total of six buildings across the entire Melbourne West Industrial market, with even fewer ‘low-site coverage’ opportunities.”

The warehouse is strategically positioned on the thoroughfare connecting Sunshine Road and Geelong Road, with easy access to all key destinations, including the Port of Melbourne, Melbourne CBD, and Melbourne International Airport.

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