Mirvac lists c$150m industrial portfolio

The Altona North property was built for Pacific Brands in 1996.

Mirvac has listed three east coast industrial investments – one attached to a development site.

Mirvac is selling an Altona warehouse leased to DHL.

The portfolio could sell for c$150 million – reflecting a c4.25 per cent net passing yield.

By income, the Weighted Average Lease Expiry is 4.4 years.

DHL recently moved into what is – temporarily – Australia’s largest distribution centre, in Melbourne’s Mickleham.

The assets contain a total 76,265 sqm gross lettable area and cover 15.23 hectares.

The Melbourne assets

The priciest property is 26-38 Harcourt Road, Altona – about 13 kilometres west of Melbourne.

Spreading 6.4ha, it contains a 32,712 sqm structure leased to DHL, which pays $2.52m per annum.

The office area is rated A-grade.

There are also 95 car parks.

DHL occupies several warehouses; earlier this year we reported it moved into what is temporarily the country’s biggest – at Mickleham.

At Altona North – Mirvac is selling a 5.55ha parcel at 47-67 Westgate Drive (pictured, top), with a net passing annual income of $2.08m.

Built for Pacific Brands in 1996, the 26,911 sqm office/warehouse is nowadays rented to Brand Collective, which is licensed in Australia to distribute, amongst other marques, Clarks, Elwood, Grosby, Hush Puppies, Julius Marlow, Mossimo, Superdry and Volley.

This investment has the shortest WALE – two years (story continues below).

It also offers a long, thin tract which could be developed immediately – or, as an extension to the main warehouse upon lease expiry.

Both the Harcourt Rd and Westgate Dve assets are held by Mirvac Property Trust with Morgan Stanley.

Campbelltown

The third offering, 1 Johnson Rd, Campbelltown, in south west Sydney, is tenanted to ZircoData.

Managed by Mirvac on behalf of a Morgan Stanley investment vehicle, it spreads 3.28ha with a gross floor area of 16,642 sqm.

The passing annual income is $1.7m.

This property also has the longest WALE (5.9 years).

CBRE’s Rory Hilton and Chris O’Brien with JLL’s Tony Iuliano and Adrian Rowse are marketing the three properties as a whole or individually.

Earlier this month the latter agency with Colliers’ Gavin Bishop listed a $200m industrial portfolio on behalf of McPhee Group, comprising 2 Maker Place, at Melbourne’s Truganina, and in Brisbane’s Berrinba – 116-130 Gilmore Rd and stages one and two of 1-21 McPhee Dve.

Based on the net passing rental return of these four properties, the agents are expecting a price reflecting a c3.6pc return.

Last week we reported Lendlease paid AMP Capital, on behalf of Swiss Re, $130.1m – a 3.62pc yield – for a Best & Less backed Eastern Creek distribution centre.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.