Braeside warehouses trade with a leaseback

The Sugar Gum Court buildings sold for $11.15 million.

Food packaging manufacturer Caspak has sold its new Braeside headquarters with a five year leaseback.

One of two Braeside Industrial Estate warehouses occupied by IVE Group.

The two connected buildings, offered separately, sold to a private investor for a combined $11.15 million reflecting a 4.37 per cent yield.

One property, 4-6 Sugar Gum Court, collected the bulk of the return – $7.5m.

Colliers’ Daniel Telling, the agent, said demand for A-grade industrial investments is strong despite the rising interest rate backdrop.

Elsewhere in the area, Frasers Property Industrial has fully developed the Braeside Industrial Estate on a 23ha site acquired from Lloyd Williams’ Hudson Conway in 2018.

Occupiers there include DKSH, Gale Pacific, Puma, Toll Global Express and IVE Group – the latter which occupies two warehouses.

Braeside is 25 kilometres south east of Melbourne (story continues below).

Green warehouse

Containing 4019 square metres, the Caspak office/warehouse, also including 8 Sugar Gum Ct, was built and fit out with recycled materials, where possible.

Energy is generated from a 134kw solar system – six times stronger than at its former headquarters.

The property also utilises power saving automatic lighting.

There are two electric charging points too – as Caspak looks to have an all-electric fleet.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of