Flight Centre executives divest new Epping warehouse
Industrial-only investment manager Cabot Properties has snapped up another north Melbourne asset, this time in Epping.
Following a leaseback deal struck on June 30 and settled in August, the Boston based group paid $37.69 million for the 2.44 hectare property, 15 Litoria Court, part of the Biodiversity Business Park.
Cycle retailer 99 Bikes, an entity of Pedal Group, co-owned by Flight Centre and its founder, Graham Turner and his son, Matt, was the seller; it is committed to the new, high-tech 16,117 square metre office/warehouse for an initial five years.
Based on the marketed starting annual rent, the net passing yield is sub five per cent however it is understood the income might have changed, upping the return.
Knight Frank’s Scott Braithwaite and James Templeton, the agents, declined to comment.
Cabot boosts book
The sale was negotiated a year after Cabot outlaid $41m for a 9.31ha site at nearby Campbellfield with plans for a $150m, c55,000 square metre business park.
That seller, Milemaker Petroleum founder Nick Andrianakos, paid the ANZ Bank $1.45m in 1993.
Outside of Melbourne, Cabot recently paid $150m for a multi-level warehouse with four tenancies, being developed by Vaughan in Sydney’s Matraville.
That deal, with LaSalle Asset Management and Hale Capital Partners, assumed a fully let market yield of 4.46pc.
Epping, marketed as the capital of Melbourne’s north, is 20 kilometres from the CBD.
Pedal to the metal
Ninety Nine bikes’ present local distribution centre is at Mickleham, about 17kms north of Epping.
Trading from 62 stores – more than 10 in each of Brisbane, Melbourne and Sydney, and four in New Zealand – the group recently cancelled c200,000 bike orders to deal with temporary overstock issues.
Flight Centre holds the majority of the company – 46.5pc – with Matt Turner controlling 21.7pc and Graham owning 15pc.
The balance is held by staff.
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