McPhee industrial portfolio collects $186m

The Truganina property is costing $69 million.

Dexus is paying McPhee Transport director Jay McPhee $186 million for four new, fully leased distribution centres.

Three are in Brisbane’s Berrinba – including:

Stage one (right) and two of 1-21 McPhee Drive, Berrinba.
  • Stage one, 1-21 McPhee Drive, a 12,789 square metre asset on 2.8 hectares, costing $37.5m;
  • Stage two, 1-21 McPhee Dve, which is under construction and will contain a 13,833 sqm warehouse on 2.3ha ($42m);
  • 116-130 Gilmore Road – stage three of the same estate, and also being built, with 13,392 sqm on 2.5ha ($37.5m).

The other, 2 Maker Place, in Melbourne’s Truganina (pictured, top), is setting Dexus back $69m.

It has a lettable area of 30,364 sqm and spreads a 6.66ha block – part of which is undeveloped.

The blended Weighted Average Lease Expiry is 6.7 years; occupiers include Australia Post, Total Logistics Solutions, Rinnai and the McPhee Distribution Services, which the McPhee family controls 40 per cent of.

Circa four per cent yield

The portfolio’s net passing income is $7,164,572.

Stage two of 1-21 McPhee Rd will settle in March, 2023 (story continues below).

The Gilmore Road property (outlined) is opposite the other two Berrinba assets (left).

The other assets will be handed over in February, 2022.

Colliers Gavin Bishop with JLL’s Tony Iuliano were the agents.

The deal comes a month since Lendlease paid Mirvac and Morgan Stanley Real Estate Investing $161m for a portfolio of three assets – in Melbourne’s Altona and Altona North and at Campbelltown, in Sydney.

The proposed warehouse at 116-130 Gilmore Road, Berrinba.

Spreading a similar overall size (15.23ha) and containing 76,265 sqm, this transaction also reflected a circa-four pc return.

In May, the same buyer spent $130.1m – a 3.62pc yield – for an Eastern Creek, Sydney, distribution centre.

That vendor, AMP Capital on behalf of a now dissolved Swiss RE mandate, paid $90m in 2019.

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Marc Pallisco

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