Woolworths-backed distribution centre trades on 6.5pc yield
A cold storage investment at Devonport – Tasmania’s third biggest city – leased until at least 2036 to a Woolworths subsidiary, is trading for the second time in four years.
Covering 1.95 hectares, 28 Hillcrest Road is fetching $4.325 million – a 6.45 per cent net passing yield.
PFD Foods, which Woolworths acquired the last 35pc of in August, occupies the 3198 square metre distribution centre and office.
The initial lease agreement (expiring in 2036) includes fixed 2.8pc rent rises.
The tenant also picks up building insurance, land tax, public liability insurance, management fees and rates.
With options, it can stay until 2071.
Devonport, with a permanent population of 26,000, is where the Spirit of Tasmania travels to and from Geelong, about 75 minutes drive south west of Melbourne (story continues below).
Another Woolworths-backed warehouse sells
Burgess Rawson’s Yosh Mendis, Beau Coulter and Matthew Wright marketed 28 Hillcrest Rd.
The property is previously recorded as selling in April, 2021, for $4.65m.
The deal comes a week since we reported another Woolworths arm, Australian Pharmaceutical Industries, leased a distribution centre in Adelaide’s north.
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