Goodman expands Fishermans Bend holding

Goodman last month paid Orica $82.5m for a Banksmeadow site (outlined).

Goodman Group is speculated to be paying close to $40 million for a 1.42 hectare industrial investment abutting its Port Melbourne Industrial Estate, which is 10 times bigger.

Its latest asset, 525 Graham Street, was offered with a two year lease to National Tiles.

Goodman recently repurposed a warehouse neighbouring 525 Graham St into a Woolworths supermarket.

Based on the passing return, the deal is being struck at an extraordinary circa-one per cent yield.

Savills’ Julian Heatherich and Benson Zhou declined to comment specifically about their campaign result.

However, Mr Heatherich added the property generated significant buyer interest.

Area seeing major investment

The Graham St property forms part an employment precinct within the 240ha Fishermans Bend urban renewal project.

Goodman controls about 40ha of the area.

In June, we reported the state government tipped in c$180m to kick-start a commercial redevelopment of the nearby 32ha ex-General Motors Holden factory.

About 7.2ha of that parcel is pre-committed to the University of Melbourne which is intending a $2 billion campus comprising the Melbourne School of Engineering and spaces for the Faculty of Architecture, Building and Planning.

Last month we reported Germany based Institutional Investment Group (2IG) outlaid $81.6m for a Fishermans Bend office/warehouse leased to Rathbone Wine Group (story continues below).

Goodman spending spree

The acquisition of 525 Graham Street comes a month after Goodman paid Orica $82.5m for a 3.995ha slice of a former chlor-alkali plant, at Sydney’s Banksmeadow.

Like the National Tiles asset, that property adjoins one of the buyer’s business parks – the Port Botany Industrial Estate.

Also last quarter, the institution outlaid $140m for a 7.6ha site at Clyde, west of the New South Wales capital.

That deal reflected a major windfall for the seller, local developer Jean Nassif, who paid GPT $65m for it in 2015.

It will be held by the Goodman Australia Industrial Partnership, which is co-controlled by the Canada Pension Plan Investment Board and All Pensions Group.

In July, Goodman picked up Castrol’s Smithfield headquarters, from BP, for $40.2m with a two year leaseback.

The buyer is intending a c35,000 sqm last mile logistics centre on that 7.16ha parcel.

A similar scaled-down development outcome is expected at 525 Graham St.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of