- Sold to a private investor.
- The warehouse was completed in May 2023.
- Has an annual rental income of $688,320.
The industrial warehouse at 8 Northpoint Drive, in Melbourne’s northern suburb of Epping, has been sold to a private investor by Colliers and CBRE on behalf of Impact Designer Homes.
Sold for $12 million, the new speculative office warehouse is a 4,172 square metre (sqm) facility that was completed in May this year, and initially leased to leading car engineering design specialist, Premcar, on a 3-year lease. The annual rental income is $688,320, equivalent to $165 per sqm.
The building sits on a 6,266 sqm parcel of land and has immediate access to several transport linkages and proximity to Epping Plaza Shopping Centre, Northern Hospital, Mantra Hotel and rapidly growing residential catchments.
The initial yield is 5.73%, with the sale price representing a building rate of $2,876 per sqm.
“Despite some headwinds in the macro environment, the overall outlook for industrial asset class remains positive,” said Colliers’ Corey Vraca.
“We continue to see strong leasing uptake and steady rental growth, particularly for functional, prime-positioned assets with strong connections to major road arterials.”
“The limited amount of available land in Melbourne’s northern industrial market is also driving the strong interest we are currently experiencing,” said CBRE’s Jake George.
“With limited new industrial assets becoming available to market in Melbourne’s northern suburbs, the current vacancy for sub 5,000 sqm buildings remains at under 2%.”
Epping picked as both a residential and commercial hotspot
In Canstar‘s December 2022 Rising Stars report, Epping was number two among the top 10 best suburbs to invest in Melbourne in 2023.
The popularity was largely driven by an abundance of employment opportunities, a solid selection of amenities, and good infrastructure.
Epping has also been touted for its relative affordability, ranked in mid-2022 as one of the cheapest Melburnian suburbs around.
The industrial sector has also recorded several wins across the past few months. January saw a 12,000 sqm site sold for $11 million, and May saw a developer acquire a nearly 4,000 sqm block of land for $4.4 million.
Recent leasing activity in the area also includes a new 10-year lease by Frasers Property Industrial with GMK Logistics to develop a 27,417 sqm facility at Premium Estate 4Ten.
The distribution centre will include a 26,407 sqm warehouse and a two-storey office of more than 1,000 sqm, which will support the company in storing and distributing their flooring products.
In May, diversified Australian property group, Sandhurst Retail & Logistics, called for expressions of interest in two land lots within SRL’s O’Herns Logistics Park; lot 104 is 43,352 sqm, and lot 105 is 21,815 sqm.
