Cootes lists Pakenham HQ with development clause
Cootes Quarry Products is selling a central Pakenham logistics asset with a 10 year triple-net leaseback.
The 1.42 hectare parcel is also offered with a redevelopment clause after six years, which the marketing agents say gives an incoming owner the chance to capitalise on the precinct’s bulky goods and industrial boom.
About $10 million is expected, which would reflect a yield circa five per cent.
Quinn Reynolds’ Linc Reynolds and Marcus Quinn are the agents.
Popular precinct
Covering 903 Princes Highway and 34-50 Mary Street, also with substantial frontage to Doherty St, the battle-axe shaped property includes an office and truck depot for Cootes.
A separate small building is sub-let to equipment hire group Better Rentals.
All up, there is 220 metres of street frontage.
“The annual rental of $520,000 per annum is supported by a triple net lease offering both investors and developers a great return while planning the next phase for the property and unlocking the site’s full potential,” Mr Reynolds said (story continues below).
In the immediate area, HMC Capital late last year outlaid $98.17m for the Pakenham Lifestyle Centre – with 30,716 sqm of area and 600 car parks – at 825 Princes Hwy.
Also, BWP Trust has for a decade controlled a Bunnings outlet, 855 Princes Hwy.
Reece is another local investor – since 1996 owner-occupying its acre showroom at 911 Princes Hwy, part of which abuts the Cootes block.
A little further away, but also in Pakenham, two years ago, Patties sold a 5.46ha factory to Charter Hall for $76m.
Like Cootes, Patties offered that property with a leaseback.
Banco and Leaf Corporation also recently moved into the suburb – picking up Pakenham Place during the pandemic with plans for a major extension and renovation.
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