Ex-Toyota distribution centre trades on tight yield
A distribution centre developed 15 years ago, then occupied by Toyota and now, Portwest Pacific, has sold to an offshore investor.
The $14.6 million result for 48-54 Burns Road, Altona, reflects a 4.84 per cent net passing yield.
Containing a 6305 square metre warehouse with up to 10 metres clearance, a c430 sqm two storey office, large undercover canopy, drive around access and car parking – the 1.1576 hectare property was offered with a five year lease.
Portwest will also pay fixed annual rent rises of three per cent for that term.
In 2028, it will also be presented with a five year option with a market rent review.
Upon obtaining vacancy, the property could be considered to have multi-level development upside; Altona a major infill hub, 13 kilometres west of the CBD, also convenient to the Port of Melbourne and Melbourne Airport (story continues below).
Colliers’ Nick Saunders, Hugh Gilbert and Daniel Telling represented the vendor which paid $7.2m in 2010. David O’Callaghan of O’Callaghan Commercial was the transaction manager.
Elsewhere in the immediate area, Lendlease in 2021 paid Mirvac $63.25m for a 6.43ha distribution centre leased to DHL.
At 26-38 Harcourt Rd, this holding backs onto neighbouring properties, spreading 2.8ha on Marshall Court, it picked up in mid-2018 for $20.6m.
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