The local arm of Germany based transport and logistics giant a.hartrodt has picked up a modern north Melbourne office/warehouse for $25 million, a staggering 85 per cent premium to what it last traded for, 34 months earlier.
Peak Equities reaped the windfall from the deal for 143-147 National Boulevard, Campbellfield – negotiated last July and settling in October.
The seller had been deriving an income of c$1m per annum from Australian Brushware on a lease set to expire this July.
a.hardrodt is expected to move in after that; the facility will complement a Tullamarine distribution centre on just under half the land for which the occupier paid $1.181m in 2003.
It also has bases in Adelaide, Brisbane, Darwin, Perth and Sydney.
Windfall for counter-cyclical investor
Peak Equities paid $13.5m for the Campbellfield asset in September, 2020 – arguably a counter-cyclical time in the market with much of the world in lockdown, but investors beginning to realise the importance of industrial during and post-pandemic.
On 1.68 hectares with 11,750 square metres in two buildings, the property previously traded in late 2015 for $10.6m.
“While there has been a reduction of purchasers in the…market, the lack of vacant industrial facilities above 10,000sqm for purchase has resulted in an undersupplied market causing continuing capital value growth,” according to the executive.
Owner occupiers move quickly and take a long term view of the acquisition and the importance of business continuing to prosper, Mr Eramo added.
“The…sector has been one of the most active purchaser groups over the last six months, seizing the opportunity to capitalise on lower competition volumes,” he said.
Pipeworks Industrial Park taking shape
Elsewhere in Campbellfield, Banco is replacing the ex-Pipeworks market on Mahoneys Road with a business park targeting tenants, due for completion in the third quarter.
The developer paid IKEA $17.24m for the 7.34ha site making way for the project in November, 2020 – about the same time Peak purchased 143-147 National Boulevard.
IKEA made a loss though, having paid $22.5m in 2010, with plans for a store.
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