IOOF Investment Management Buys $24 Million Industrial Asset, Derrimut

Written by Marc Pallisco   
Monday, 19 November 2012 00:00

IOOF Investment Management Ltd has paid $24 million for a 27,000 square metre industrial facility in Melbourne’s west.

The Derrimut investment is within Australand’s West Park Industrial Estate – a 290 hectare industrial park located fifteen kilometres from town on Boundary Road, abutting the Deer Park Bypass.

Just over a year ago IOOF paid $19 million for another asset in the Australand estate. Other West Park occupants include Mitre 10, Freight Specialists, La-Z-Boy and Bed Bath N’Table.

IOOF head of Property Investments Simon Gross said: “We are very pleased with the investments we have secured through Australand. The assets provide high quality, long term covenants and brand new prime grade industrial assets. These properties complement our direct property mandate to invest in core, fully leased assets using low gearing.”

“These assets will be placed in the Property Plus diversified trust which has generated an annualised return of 11.58% per annum over the last ten years. Having recognised investors’ requirements for funds which deliver relatively high and consistent returns during periods of economic uncertainty, IOOF has allocated an additional $90 million to acquire prime properties,” Mr Gross said.

Colliers International’s Peter Evans and Tony Iuliano sold the site with Australand’s Andrew Hanna.