Colliers’ Daniel Telling, Nick Saunders and Hugh Gilbert have, together with Transaction Advisor David O’Callaghan from O’Callaghan Commercial, successfully transacted a 6,733 sqm industrial property in Melbourne’s Altona for $14,600,000 on a 4.8% yield.

The modern distribution centre is fully leased to the leading design and manufacturer of high-quality workwear, footwear and PPE, Portwest Pacific, who employs over 4,500 globally and sells stock to over 10,000 safety distributors and retailers in over 100 countries. Portwest Pacific has committed to a five-year lease generating a passing net income of $706,955.

The property sits on a prominent 11,576 sqm infill land holding with the potential of future value- add investment opportunities, strategically positioned to benefit from several government infrastructure projects currently taking place in Melbourne’s West.

David O’Callaghan, said, “The asset was purchased new in 2011 as a purpose-built design & 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.”

Daniel Telling, Manager of Industrial Capital Markets at Colliers, said, “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.

“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.”

48-54 Burns Road is located within the tightly held Altona industrial and logistics precinct with access to all the major roads, including the Princes Freeway, less than 1km from the property and connectivity to the Port of Melbourne, CBD and Melbourne Airport. It is a sought-after location favoured by leading transport, logistics and retail industries, including DHL, Super Retail Group and EFM Logistics.

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

Colliers Industrial National Director Nick Saunders said, “Melbourne’s West logistics sector continues to benefit from strong structural tailwinds, leasing to sustained high occupancy levels. With a limited supply of available warehouse space for lease, each market continues to see 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.