ESR lists $25 million-plus industrial investment in Melbourne’s Mulgrave
Hong Kong based logistics giant ESR, which rose to prominence in Australia last July when it acquired industrial developer CIP from Charter Hall for $102.5 million – has this week listed for sale a major business park in Melbourne’s south-east.
The 2.25 hectare holding at 677 Springvale Road, Mulgrave, is expected to trade for more than $25 million.
The property contains seven modern buildings, with a total area of 12,157 square metres, designed for last-mile logistics occupiers.
The structures are configured as office-warehouses and office-showrooms.
HRL Limited is the biggest tenant – it contributes 35 per cent to the passing income.
The fully let annual rental return is $1.73 million, the brokers, Knight Frank’s Gab Pascuzzi and Scott Braithwaite, with CBREs Rory Hilton and Ben Hegerty, estimate.
The agents say the property has long-term development upside – located within the Monash Technology precinct, close to the Brandon Park Shopping Centre, Monash University Clayton campus, Synchrotron and Melbourne Heart Hospital, construction of which we reported began late last year.
This pocket of Springvale Road is also close to the Monash Freeway, Dandenong, Ferntree Gully and Wellington roads.
Mulgrave is about 21 kilometres from the city centre.
Mr Pascuzzi said 677 Springvale Road, while in the early stages of the campaign, has received strong enquiry from institutions, offshore groups, syndicates and Australian investors, due to the Mulgrave location, the flexibility of the block, and lack of quality industrial investment opportunities at the c$25 million plus price point.
ESR acquired the asset following its $723 million takeover of industrial and office landlord Propertylink last April.
ESR has in recent months forged a strong relationship with Singapore listed Frasers Property Australia.
Last month, we reported, exclusively, that the pair snared Nissan as a occupier for nearly two thirds of an as-yet-unbuilt office at 1/254 Wellington Street, Mulgrave.
Also last month, ESR and FPA offered that Wellington Street office for sale: the eight-storey, 17,393 sqm building on a 1.1 hectare holding, carries a price guide of well over $100 million.
