Partnership drops $600m on incomplete Melbourne business park, intermodal terminal
Aware Super Real Estate and Barings, formerly known here as Altis Property Partners, are paying $600 million for an industrial estate with an intermodal terminal in Melbourne’s north Somerton.
The off-market deal for the 99 hectare, incomplete Austrak Business Park is with GPT Group and Austrak FM, co-owners for just over 20 years.
It includes a “stabilised component” with seven leased assets returning $27.4m annually with a 2.3 year weighted average lease expiry.
A land component, serviced for super-lots, can accommodate 200,000 square metres more product with an end value circling $500m.
The intermodal facility, Australia’s largest, set to connect to the Port Rail Shuttle Network and Inland Freight Network, is costing $4.8m per annum, for each of 50 years.
Turnover rent could be derived here, contributing to a total annual revenue of about $1m.
Cushman & Wakefield’s Tony Iuliano and Adrian Rowse were the agents; the price is believed to be the state’s highest for a private industrial asset.
In 2016, the government sold the Port of Melbourne leasehold for 50 years to Lonsdale – a sale worth $9.7 billion.
Three months ago, we reported Barings, in partnership with Rest Super, paid Goodman Group $780m for 12 east coast industrial investments, all up with 340,000 sqm over 70ha (story continues below).
Austrak Business Park
At the north west corner of the Hume Highway and Somerton Road, the Aware/Barings site includes 193,611 sqm of product occupied by, amongst others, Bunnings, Coles, Hugo Boss and Labelmakers.
Almost 38ha is available for development – some 14ha of which fronts the Hume.
The intermodal facility – to be operated by Aware’s Intermodal Terminal Company – is set to open next year.
“The Austrak Business Park represents a significant milestone for our strategic growth into the industrial sector and follows our other developments in New South Wales, The Yards and First Estate,” Aware chief executive officer, Michelle McNally, said.
The buyers have already created a masterplan integrating new developments with the intermodal facility.
Somerton is about 23 kilometres from Melbourne’s CBD.
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