Two industrial assets in Melbourne’s west have been sold through AND Property’s Richardo Cappelletti and Bryce Pane.

The transactions, totalling $30.4 million, highlight burgeoning positivity within the current real estate landscape, particularly in the industrial property sector.

The first transaction, involving 1 – 23 Banfield Court, Truganina, showcased a sale price of $20,400,000 at a sharp yield of 2.49%.

With a substantial frontage of 128 metres to Leakes Road, this property sprawled across a 29,825 square metre site and comprises a 2,508 square metre office/warehouse plus a generous concrete yard spanning 12,500 square metres, resulting in a site coverage of just 8.4%. The property, leased to Punjab Roadtrains Pty Ltd (Auswide Transport Solutions), sparked immense interest, drawing over 89 inquiries through an EOI campaign.

Mr Cappelletti said AND Property received six offers in total, with the property drawing interest from owner occupiers, developers and investors.

Mr Pane said the second transaction at 13 – 17 Jessica Way, Truganina was snapped up by the Foresite Group. (Below Image) 

The property transacted for $10 million reflecting a yield of 4.03%.

Situated on an 11,900 square metre site, the 2,055 square metre office/warehouse features an impressively low site coverage of just 17.2%. Amenities include a 12.5-tonne gantry crane, six roller doors, and a covered wash bay.

The property, leased to CTR Truck Sales Pty Ltd (Scully RSV), garnered significant interest, ultimately closing within two weeks of presentation.

Mr Cappelletti said that despite the sharp yield, it is worth noting that the replacement cost for this asset would be considerably higher than the sale price achieved.

Mr Pane added further insight, stating, “this speaks to current opportunities available for those with patient capital that can hold a tighter yield on an underlet asset, there is value to be found in properties where leases were agreed in an industrial rental market before substantial rental growth had been achieved.

“We currently have nearly $100 million in unplaced capital looking for a new home.” Commented Mr Cappelletti and Mr Pane. 

Both transactions underscored the vibrancy of the industrial property market, attracting attention from a diverse array of buyers, including owner-occupiers, developers, and investors. AND Property, a newcomer to the industry, demonstrated its prowess in facilitating significant deals, thereby solidifying its presence and highlighting its robust pipeline of upcoming transactions, they further added. 

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