Dexus sells Melbourne warehouses to tenant
Dexus has sold two large adjoining south east Melbourne warehouses to one of the tenants.
Dulux Group is paying $40 million for the Dandenong South properties, with 16,696 square metres on 3.88 hectares.
It occupies the smaller building, 2-24 Pound Road West.
Bowen & Pomeroy rents the neighbouring property, 384-394 South Gippsland Highway.
The blended weighted average lease expiry is 3.4 years.
Based on the annual net rental return ($1.68m), the result reflects a low 4.2 per cent yield.
Cushman & Wakefield’s Charlie Holmes, Adrian Rowse, Tony Iuliano and Chris Jones were the agents.
Dulux takes two
The two properties were being marketed individually.
Rent is below market, the agent said, to the tune of c$800,000 per annum.
“Dandenong South is one of Australia’s most sought after industrial precincts with a vacancy rate of just 1.4pc,” they added.
Average rents rose this year, they added, by c9.2pc.
There is also only some 200ha left in the south east sector Dandenong South falls within, according to the agents.
Dexus reweighs in Dandenong South
Dexus retains the Pound Road West Industrial Estate, valued last June at $88.8m.
With c78,000 sqm, occupiers there are Reece Australia, Elite Logistics and Everfast.
Earlier this month we reported the asset manager outlaid $47.5m for neighbouring Dandenong South investments, all up on 3.64ha.
Fully leased, the blended yield was 5.4pc.
The suburb is about 31 kilometres from town.
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