Derrimut warehouse sells for $11.7m after lease renewal
Melbourne asset manager The Property Advisory has flipped a western suburb warehouse after renewing a lease five years.
The Derrimut property, 50 Calarco Drive, collected $11.71 million following an off-market campaign which settled in August.
On 1.07 hectares it contains a 5162 square metre office/warehouse, completed in 2010.
The new rental agreement with Cummins, which in 2022 took over the occupier, Meritor Heavy Vehicle Systems, includes fixed 3.5 per cent rent rises.
“Throughout its ownership, TPA worked closely with Meritor and subsequently Cummins to accommodate their evolving operational requirements, exploring opportunities for facility expansion and improvements,” TPA joint managing director, Lucas Shannon, said (continues below).
“This approach helped strengthen the tenant relationship and contributed to securing the new five-year lease ahead of the sale, delivering a 35pc increase in rental income, together with fixed annual rental increases” he added.
Cushman & Wakefield’s Chris Jones was the agent.
TPA paid $5.4m in 2013.
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