altona portwest pacific leased property sells for 14.6 million dollars
The Portwest Pacific leased property has sold for over fourteen million dollars. Image: Supplied.
  • Previously transacted in 2011 as a purpose-built design and construct for a Toyota subsidiary
  • Property is fully leased to Portwest Pacific
  • Portwest Pacific is a manufacturer of high-quality workwear, footwear and PPE

A private investor has acquired an industrial property at 48-54 Burns Road in the Melbourne suburb of Altona for $14.6 million on a 4.8% yield.

Enjoying access to major roads, including the Princes Freeway, and easy access to the Port of Melbourne, CBD, and Melbourne Airport, the modern distribution centre is fully leased to the leading design and manufacturer of high-quality workwear, footwear and PPE, Portwest Pacific.

The company has committed to a five-year lease, generating a passing net income of $706,955.

Colliers’ Daniel Telling, Nick Saunders and Hugh Gilbert have, together with transaction advisor David O’Callaghan from O’Callaghan Commercial, successfully transacted the deal.

Previously owned and built by a Toyota subsidiary

The property sits on an 11,576 square metre infill land holding.

According to O’Callaghan, the asset was acquired over a decade ago for a Toyota subsidiary.

“The asset was purchased new in 2011 as a purpose-built design and construct for TTA Australia – a subsidiary of the Toyota Motor Corporation – for $7,200,000 for a trust syndication and was 100% subscribed ahead of settlement,” said O’Callaghan.

Region to benefit from significant growth

Several government infrastructure projects currently taking place in Melbourne’s West are expected to be a boon for the property. The location is also said to be favoured by leading transport, logistics and retail industries, including DHL, Super Retail Group and EFM Logistics.

“Melbourne’s West industrial and logistics market has been one of the most active in the country over the past three years, supported by record levels of infrastructure investment and diminishing land availability, which has reinforced unprecedented rental growth over the past three years,” said Telling.

“More broadly, the market has been a major benefactor of the structural tailwinds in the sector since 2020, with retailers and transport and logistics groups looking to expand their footprint to cater for the rapid growth of e-commerce.”

Saunders added that supply remains a key factor behind the record levels of income growth, which in turn has largely offset yield expansion.

“Melbourne’s West has been the dominant submarket across the city, with its popularity from occupiers stemming from its proximity to the Melbourne CBD and access to major arterial roads. Similarly, its ability to provide groups with scale at an affordable price compared to other markets has lured groups from other markets across Melbourne,” concluded Mr Saunders.

The buyer, a private investor with existing business links to the Altona region, was represented by Jeremy Gruzewski – Director of Agency at Aston Commercial.

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