Laminex manufacturing plant sold to developer
Forza Capital has acquired the prominent Laminex manufacturing plant at Cheltenham with plans to repurpose buildings for commercial use and develop a tract with residential.
The 5.5 hectare site at 332-336 Bay Road, also exposed to Jack, is costing $53.8 million.
Another c$39m is expected to be spent on remediation, demolition, civil works and tenant incentives once the project is complete.
The project will be held via a fund now calling on wholesale investors.
“Trustee modelling for the seven year projected period targets a net internal rate of return of 15 per cent, an equity multiple of 2.41 and an average distribution yield of 5.46pc pa,” an Information Memorandum said.
“Once the buildings are repositioned and re-let after the tenant vacates, distributions are projected to increase to around 8-9pc,” it added.
Sale follows Queensland buy
Laminex’s parent, Fletcher Building Limited, offered 332-336 Bay Rd with a three year leaseback with a one year option.
It has occupied over 70 years.
The site’s east edge abuts established residential zone, walking distance to Southland, which is serviced by public transport.
The proposed Cheltenham station, part of the Suburban Rail Loop, is set to open in c2035 about 500 metres away at the Sir William Fry Reserve, a move expected to result in higher allowable densities (continues below).
Colliers’ Jozef Dickinson, Rob Joyes and Gordon Code were the agents.
The deal comes five years since Fletcher Group took over a significant ex-Carter Holt Harvey plant at Monkland in Gympie – making Laminex Australia’s third-largest manufacturer of decorative and raw particleboard panels.
Redevelopment planned
Forza plans to rezone about 1.6 hectares of the Cheltenham site from General Residential to Residential Growth – which could allow circa eight level apartment buildings.
The asset manager said about 54 per cent of the acquisition value is attributable to the residential component
The balance (3.95ha) will make way for a commercial precinct targeting large format retail, office and hospitality.
The deal comes about six years since Sunkin Property and Wolf Projects outlaid c$90m for the 9.3ha ex-CSIRO factory at nearby Highett.
1048 dwellings have since been permitted there in 14 buildings between two and seven storeys.
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