Charter Hall spends $30.9 million on Dandenong South industrial investment

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.

Charter Hall is paying $30.9 million for the 6.8 hectare site containing buildings with some 20,000 sqm of 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 Dandenong South investment sold with a 20-year triple-net leaseback on a 5.38 per cent yield.

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.

Share or Recommend article

Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
error: Content is protected !!