Two exceptional Melbourne industrial properties with first-class green credentials and long-term income security are being offered for sale by JLL – as an unmatched portfolio of prime assets or individually.

The properties, located in exceptionally well-serviced Derrimut west of the Melbourne CBD and Braeside (Southeast), generate more than 1.4 kW hours of solar energy annually, alleviating grid demand and offering buyers scope for reducing carbon emissions.

The combined size of the properties – at 2-10 Bliss Court, Derrimut, and 91-97 Woodlands Drive, Braeside – tally more than 31,000 square metres, including 14,728 sqm of highly functional building improvements.

Both properties are 100-per % leased to quality tenants operating within two of the fastest-growing industrial market segments. They enjoy excellent access to Melbourne’s arterial road network, further underscoring their investor appeal. 

“These are exceptional assets,” said Ben Hegerty, JLL’s Head of Logistics and Industrial Capital Markets – Australia. “The properties couldn’t be better placed within two of Melbourne’s premium industrial and logistics precincts, near large residential populations. 

“The assets are perfectly positioned to benefit from the continued focus on last-mile delivery and growth in e-commerce. Their green credentials are a further standout.”

The properties offer long-term income security with a combined WALE of 12.8 years and net passing income of more than $1.7 million ($118 per sqm). Both sit within precincts with record-low vacancy levels of less than 1%, underpinned by continued strong occupier demand, which notched rental growth in excess of 20% over 2022.

Both properties are at the forefront of the transition to a decarbonised future; both have a strong ESG foundation, with opportunities to unlock additional value.

Situated 16 kilometres west of the CBD, the Derrimut property is leased to Concept Logistics until August 2032 at $1.02 million p.a and $105 sqm.

It enjoys unparalleled access to Melbourne’s wider arterial network via the Western Freeway (M8), Western Ring Road (M80) and Westgate Freeway (M1) and sits within a precinct set to benefit further benefit from infrastructure projects currently under construction, including the Westgate Tunnel project.

The property bears a 620-kW solar system generating an estimated 796,000 kW hours of clean energy annually.

The Braeside property is leased to Flavour Makers Australia until September 2041 at $694,000 p,a at $142 sqm.

Strategically located in the heart of the premier Bayside industrial pocket 25 kilometres south-east of the CBD with excellent access to major surrounding arterials including the Dingley Bypass, Eastlink, Nepean Highway and Mornington Peninsula Freeway. Thoroughfares including Lower Dandenong Road and Boundary Road facilitate direct access to the surrounding residential catchments – solidifying Braeside as a key last-mile location.

The site’s 440kW solar system generates an estimated 575,000kW hours of clean energy annually.

“With lease expiries of 9.2 years and 18.2 years these properties provide investors with long-term income security and strong running yields.

“Both properties are 100% leased to tenants that operate in two of the fastest growing sectors of the Australian economy and in a market that has seen rental growth across Melbourne precincts average 21% over the past year supported by a historically low vacancy rate of approximately 1%,” said JLL Director Capital Markets Industrial and Logistics  Jack Kelliher.

The portfolio is being offered for sale individually or as a whole via an International Expressions of Interest campaign. First-round bids are due by 3 pm (AEST) Wednesday, 26 July 2023.

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