Singapore’s listed Cache Logistics Trust pays $41.2 million for Altona warehouse

182-198 Maidstone Street, Altona.

Cache Logistics Trust, which is listed on the Singapore Exchange, is paying $41.2 million for a large, modern industrial asset in Altona, 12 kilometres west of the Melbourne CBD.

It is the 17th logistics warehouse on Australia’s seaboard to fall under Cache’s management since it entered the local market in 2015, according to this item in The Australian.

The property, 182-198 Maidstone Street, was valued at $30 million in October 2016 when the vendors – an alliance comprising Abacus and GAW Capital Trust – used it to seed part of a $200 million industrial real estate focused investment vehicle.

On an 8.3 hectare site and containing 37,853 square metres of lettable area and a 6601 sqm “super canopy”, the property is 76 per cent leased to a logistics company backed by Arrow Worldwide Pty Ltd, which recently signed a three year lease.

The vendor offered the site with a two-year rental guarantee for the vacant space.

Assuming the asset were fully leased, it would return net rent of $3.135 million, according to CBRE marketing agents Chris O’Brien, Rory Hilton and Ben Hegerty.

The brokers marketed the location, nine kilometres north of the Port of Melbourne, and near to a network of major road arterials, as part of a private sale campaign targeted to investors.

An aerial photo showing the Altona North site (outlined) which sold for $18 million to an owner-occupier last year.

In December, we reported that an owner-occupier in the furniture industry had paid $18 million for 441-459 Kororoit Creek Road, Altona North (pictured, right), following an off-market campaign managed by JLL’s Matt Crofts and Matt Ellis.

A 17,000 sqm warehouse covered just a small portion of this 9.3 hectare block, which was valued for its potential to replaced with new buildings, or subdivided and sold down.

In September, Colliers International’s Nick Saunders sold an Altona warehouse at 10-20 Modal Place for $7 million, 48-hours after listing it off-market. This asset, containing an 8100 sqm warehouse leased to Victorian Freight Specialists, traded on a 6.5 per cent passing yield.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
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