Charter Hall has spent $30.9 million on an industrial asset in Melbourne’s Dandenong South.
The property, 282-300 Hammond Street, sold with leaseback to Greencare Developments, which manufacturers “eco-responsible” cosmetics and household cleaning products.
On the south-west corner of Brooks Drive, the 6.8 hectare holding contains buildings with a total of about 20,000 square metres of lettable area.
On those numbers, the property is selling on a 5.38 per cent yield, valuing every sqm of lettable area at $1533 and sqm of land at $455.
The asset was formerly owner-occupied by PZ Cussons.
“The sale and leaseback transaction sold subject to a 20-year triple net lease to Greencare Developments/Aware Environmental,” JLL selling agent Tony Iuliano said, adding that the site within an Industrial 2 zone, “provides further development potential”.
Mr Iuliano marketed the property with colleague Adrian Rowse.
Elsewhere in the suburb – considered the most expensive industrial market outside of Melbourne’s inner-city to buy or rent – Charter Hall owns the Dandenong Distribution Centre at 2 Portlink Drive – a 15.9 hectare site with a 69,217 sqm warehouse purpose-built for occupier, Woolworths.
Charter Hall also controls the Rondo Facility at 1 Columbia Court (and also with frontage to busy Glasscocks Road).
In Dandenong, Charter Hall owns the Discovery Industrial Estate in Discovery Road – a business park with five buildings containing about 71,814 sqm of lettable area.
The acquisitive Charter Hall has been an active industrial property purchaser this year.
In May, we reported it paid $29.5 million for an Altona logistics centre.
Late last year, we reported it also paid Village Roadshow $12.5 million for the 8.1 hectare Coburg Drive-in – which will be development site if the occupier vacates upon lease expiry in 2028.
Also last year, Charter Hall paid the federal government $118.5 million for two industrial investments leased to Australian Border Force – in Bulla, and in Sydney’s Banksmeadow
Charter Hall also paid $55 million for the National Archives of Australia-leased warehouse in Villawood, in Sydney’s west.