Dawkins Occhiuto are offering for sale the Multinational packaging manufacturer and supplier, San Miguel Yamamura’s Knoxfield industrial home looks set to attract strong interest from a hungry market for industrial investments on the back of the blue chip tenancy, long WALE, high underlying land value, and rezone potential.

The 117-121 Lewis Road asset will be sold with a new ten year lease to San Miguel subsidiary Cospak with a net income of $1,048,721pa on completion of the current expansion of the asset.

An adjoining, 976 square metre site, at 84 Parkhurst Drive, leased to antique store, Hidden Portal, provides a second street frontage and future development flexibility.

The property, being marketed by boutique Melbourne agency, Dawkins Occhiuto and transaction manager Transcend Property, comprises 6343 square metres of office/warehousing, with an additional 3500 square metre warehouse expansion soon to be completed, on a 17,789 square metre site.

According to Dawkins Occhiuto Director, Walter Occhiuto, who is marketing the property with colleague Chris Jones, the property presents one of the few remaining large landholdings within a supply-constrained precinct.

``This is a property which provides investors with a strong and immediate income stream on the back of a WALE of 9.5 years chiefly to a blue chip tenant, but one which also provides an outstanding value-add outlook with the ability to fully explore the property’s rezoning potential.

``In a precinct with a limited and diminishing supply of employment land that has historically kept vacancy rates low, coupled with its close proximity to Westfield Knox, hospitals, schools and universities, Knoxfield has become a popular and tightly held investment destination,’’ Mr Occhiuto said.

He said the expansion of the building and new 10 year lease demonstrated the tenant’s commitment to the precinct having been in occupation since 2001.

The property is located a short distance north of Burwood Highway approximately 25 km east of the Melbourne CBD and just over 3 km from EastLink via Burwood Highway and High Street Road connections.

Mr Jones said the scarcity of long term and quality investment product across all asset classes was reflected in strong demand for industrial assets and, in some areas, yield compression despite current economic conditions.

``In what has been the most challenging market bar none, industrial property has maintained its ground and improved its status as one of, if not the most sought after, commercial property investment sectors.

``The most popular assets have been in the warehousing and logistics area but demand has also been about the traditional property fundamentals of location, lease term, tenancy profile and upside, particularly with regard to future development or value add potential,’’ Mr Jones said

Established in 1969 as Bottle Containers Pty Ltd, Cospak forms part of San Miguel Yamamura Australasia Group (SMYA), a joint venture between San Miguel Corporation of the Philippines and Nihon Yamamura Glass of Japan. A key focus is the supply of packaging to the food, beverage and pharmaceuticals industries. The tenant has continued to operate through the pandemic.

The property will be sold by Expressions of Interest.