EG buys east Melbourne business park
EG has quietly bought a Melbourne business park for its Private Wealth arm – and is selling a Queensland asset from its Australian Core Enhanced Fund.
The Victorian property, covering 1.98 hectares at 899 Mountain Highway, Bayswater, set it back $19 million.
Five buildings contain a total 10,834 square metres.
Between 745-3124 sqm, each is strata titled leased to a mix including automotive, manufacturing and self storage.
The property failed to sell following a public marketing campaign in 2023.
The latest deal was brokered off-market by a different agency – Go Commercial Industrial.
Robert Colaneri was the agent.
The executive also sealed a lease deal for one of the warehouses, to Chinese car dealer, BYD, just before settlement.
Refurbish, reposition planned
EG Private Wealth head, Rodney Walt, said the investment syndicate which will hold 899 Mountain Hwy was oversubscribed.
“The…five freestanding industrial units in a tightly held eastern precinct [offers] strong fundamentals and value-add potential,” according to the executive (continues below).
“Our team is excited to implement the ‘refurbish, reposition’ strategy in the new year,” he added.
Bayswater is about 28 kilometres from town.
EG sheds Queensland warehouse
Meanwhile the asset manager is close to selling a Mansfield warehouse, 140 Wrecker Road, in Brisbane’s south east.
It paid $32m nearly five years ago.
On 2.4ha, it contains 24 units with a total 13,164 sqm, considered to be rented at about 25 per cent below the market rate, CBRE’s Ben Lyons and Matthew Frazer-Ryan, who are representing EG with Knight Frank’s Ben Hatch and Elliot Ryan, said when it was listed.
An expressions of interest campaign closed early October.
Collecting c$2.7m annual net passing rent, with a weighted average lease expiry of 3.6 years, it would be worth less than c$22m assuming an eight per cent yield.
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