Centennial secures Cleanaway, Florsheim to Melbourne industrial park

Stage one of the Tottenham Industrial Park (outlined).

Centennial has filled three quarters of a 19,601 square metre warehouse – the refurbishment of which is the first stage of its 10.37 hectare Tottenham Industrial Park, at 414-418 Somerville Road, in Melbourne’s inner west.

Centennial recently sold Brisbane Isuzu a Gold Coast site for $16.85 million.

In the biggest deal, Cleanaway has leased 10,890 sqm for an initial 11 years.

Having just won the state government’s Container Deposit Scheme, which will pay 10 cents for drink cans, bottles and cartons, the property will become a recycling facility.

In a second deal, Florsheim has signed up for a 4416 sqm space for an initial five years.

Following a third rental agreement with an as yet undisclosed occupier, Centennial has leased all but 4416 sqm of the first stage prior to practical completion.

The manager will soon kick off construction of stage two, due to open about this time next year.

Centennial reweighs

Centennial bought the land making way for the Tottenham Industrial Park in two parts – the first in 2018; spreading 7.37ha, it cost $22m, described as below land value despite having 23,343 sqm of improvements able to return $1.49m per annum.

The year later, the manager outlaid $6.4m for the balance (418 Somerville Rd).

Upon completion, the business park is expected to be worth c$110m (story continues below).

Earlier this week, we reported Centennial sold a 4.25ha ex-wrecking yard on the Gold Coast to Brisbane Isuzu for $16.85m – a rise on the $9m it paid in 2018 when it was tenanted.

Tottenham Industrial Park

Set to be operational by October, the Cleanaway tenancy will predominantly be fit out with recycling equipment, with 420 sqm of A-grade offices. CBRE’s Josh Deluca was the agent.

“Cleanway’s upcoming move to Tottenham Industrial Park is a nod to the location of the site, our ability to partner with occupiers and the quality of the value-added refurbishments we are undertaking to appeal to a range of industry sectors,” Centennial executive director and chief executive officer, Industrial & Logistcs, Paul Ford, said.

Florsheim, meanwhile, which has moved in, is using the space as a distribution centre.

“Tottenham is a prime, highly land constrained inner west suburb…within close proximity to major arterial road and rail networks plus the Port of Melbourne eight kilometres away,” Mr Ford added.

“Centennial is buoyed by the quality and scale of tenants drawn to Tottenham Industrial Park and the company will continue to add to its growing portfolio of prime mid-space holdings within the industrial and logistics sector that now comprises 63 assets throughout Australia…valued at around $1.1 billion,” according to the executive.

Five more projects in the pipeline carry a c$350m end value, he said.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.