Dixie Cummings sells Seaford warehouse with a leaseback
Furniture importer and wholesaler Dixie Cummings has sold a Seaford industrial site with a leaseback.
On 4.3 hectares, 80 Hartnett Drive is believed to be trading at a circa six per cent yield – so for over $20 million.
The buyer is a Sydney based private investor.
The asset contains 17,691 square metres of warehouse and office space within three interconnected buildings.
It also includes large hardstand and truck marshalling areas.
Dixie Cummings is the country’s largest group of its type dealing in dining, occasional lounge and bedroom furniture.
It was represented for the deal by Cushman & Wakefield’s Andrew O’Connell with Jones Real Estate’s Paul Jones.
Seaford is 36 kilometres south east of Melbourne.
80 Hartnett Drive
Dixie Cummings offered 80 Hartnett Drive with a two year leaseback, with a three year option; the starting annual rent is $1.35m (story continues below).
Longer term, the block could make way for a business park or be subdivided and sold down.
“Seaford has been undergoing major gentrification over the past five years and the associated benefits are not being realised,” Mr Jones said.
The sale comes seven months since Brix and Costa Asset Management outlaid $19m for a 6.55ha property now making way for an industrial estate at 300 Frankston Dandenong Road, in the suburb.
“Industrial property in Seaford has really come into its own over the past 12 months, with significant growth in land and building values,” according to Mr O’Connell.
“With a severe undersupply of industrial land in Melbourne, particularly in the south-east, and the property’s proximity to Peninsula Link and the Mornington Peninsula, the [asset] was highly sought after,” he added.
“The purchase represented the perfect opportunity to secure a significant holding income while looking ahead at the enormous redevelopment upside”.
Earlier this month we reported Salta snapped up a 123ha industrial block at Cranbourne West, about 10 kms east of Seaford.
That builder owns substantial product in Dandenong South, also in the pocket, where it is also proposing a $155m intermodal facility.
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