Fishermans Bend sites collecting $100m-plus
Two major Fishermans Bend sites are selling for a total of over $100 million.
In the biggest deal, a modern, four storey office/warehouse at 262-276 Lorimer Street, opposite Pier 35, is trading for $81.6m – reflecting a c3.6 per cent yield.
The vendor, Bensons Property Group founders the Jreissati family, picked it up in 2014 for $31m – a 7.7pc return.
That seller, Rathbone Wine Group, offered it with a 15 year leaseback.
Dawkins Occhiuto’s Chris Jones brokered the latest sale, off-market; the buyer, Germany based Institutional Investment Group (2IG), declined to add comment.
It is the fund manager’s maiden local purchase.
Benchmark yield: agent
On 1.69 hectares at the corner of Sabre Drive, also with access to Beaufort Place, 262 Lorimer St, as it is known, contains 5000 square metres of office area over four floors – fronting the Yarra River.
The property also includes a c10,200 sqm temperature-controlled warehouse and production space and café/restaurant.
There is a multi-storey car park and outdoor entertaining area too.
Rathbone extended its lease prior to the asset being offered for sale; it is now committed for 13 years with fixed annual 2.75pc rent rises.
“Industrial and logistics has emerged post 2020 as the most sought-after traditional asset class and that is reflected in this trophy asset sale which is the strongest industrial pricing Victoria has seen and, in no uncertain terms, a benchmark yield which pre-COVID was unheard of,” Mr Jones said (story continues below).
The deal comes four weeks since car dealer Nick Theodossi and developer Ross Pelligra paid $50.5m for the Subaru Interactive dealership, on 1.8ha, at 99-109 Lorimer St, Docklands, with redevelopment plans.
Also last month, Wingate outlaid $32.12m – reflecting a 4.8pc yield – for a convenience retail investment at 62 Cook St, near the West Gate Bridge.
That vendor, David Feldman, acquired it in 2016 for $22m at a seven pc return.
National Tiles property selling
Meanwhile, a warehouse occupied by National Tiles, at 525 Graham St, Port Melbourne, is under offer.
The 1.42 hectare Capital 1 zoned property carried c$25m price hopes when Savills’ Julian Heatherich, Benson Zhou and Clinton Baxter listed it in July.
Next door to a newly opened Woolworths, the asset was promoted for its development upside, with vacant possession expected in 2025.
Both 262 Lorimer St and 525 Graham form part of an employment precinct within Fishermans Bend – at 480 hectares, Australia’s biggest urban renewal precinct, expected to contain product with an end value of $12 billion.
In June, the state government tipped in $179.4m to kickstart a redevelopment of the ex-GMH site as a high-tech industrial and office hub with a University of Melbourne campus.
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