On behalf of ASX listed global corporate Palla Pharma. 2-50 Glenelg Street, Coolaroo for sale by Colliers Gavin Bishop, Sean Thomson, Damian Marinelli and Nick O’Brien.

Covering a substantial 8.20 hectares with versatile existing improvements, 2-50 Glenelg Street presents the unique opportunity to acquire large industrial land holding within a growth market of in Melbourne’s north. The site has a price expectation of more than $45 million.

The offering will be underpinned by a secure leaseback to ASX listed Palla Pharma, whilst providing the additional benefit of a multitude of redevelopment and repositioning characteristics upon the 82,000m² freehold land holding. The existing improvements have useable life beyond the existing occupancy and are strategically located with excellent access to major arterial roads such as the Hume Highway and Metropolitan Ring Road, together with major infrastructure such as the Melbourne International Airport and the Melbourne CBD, ensuring all local, national, and international markets are within reach.

Gavin Bishop, Head of Industrial Capital Markets at Colliers, maintained “opportunities to acquire such significant scale with genuine flexibility rarely become available within Melbourne’s tightly held northern market. Coolaroo is a land constrained market within proximity to large residential catchments, earmarked for strong rental / capital growth prospects in the future, further set to benefit from the rapid growth of e-commerce.”

“The Australian industrial and logistics sector has been the best performing commercial property sector over the past 12 months as strong fundamentals support elevated demand levels within both the occupier and investment markets.” said Mr Bishop.

Sean Thomson, Director, Industrial Capital Markets, Australia at Colliers “The Melbourne industrial and logistics market has recorded strong growth over the past five years, supported by high levels of population growth, record levels of infrastructure investment, and strong levels of consumer consumption which has prompted large growth in e-commerce platforms”.

“Led by a significant weight of capital from both domestic and offshore groups, industrial yield compression across Melbourne has averaged 115 basis points over the past 12 months within the prime market. Yields currently average 4.30% for prime warehouse space (range of 3.75% to 5.00%) while secondary is higher at 5.15% (range of 4.25% to 5.75%) and depends on the location, strength of covenant and WALE.”

From an investment perspective, strong fundamentals continue to drive significant capital flows into the Victorian industrial and logistics sector and yields have compressed substantially off the back of this capital.

2-50 Glenelg Street, Coolaroo is being offered for sale via Expressions of Interest closing 4:00pm (AEST) Friday, 3rd September 2021. 

To request a copy of the Information Memorandum please contact one of the marketing agents via the contact details below.