Brix, Costa Joint Venture Secures Melbourne Industrial Foothold


Brix Property Group and its joint venture partner Costa Asset Management have swooped on a large industrial holding, securing a foothold in a tightly held precinct in Melbourne’s east.

The acquisitive Melbourne-based developer has sealed a $7-million leaseback deal with RUAG Australia for the 1.9ha property at Bayswater, reflecting a circa 8 per cent yield.

RUAG Australia will continue to occupy the facility at 836 Mountain Highway under a three-year tenancy negotiated as part of the transaction.

The large centrally located site, which boasts dual street frontage along Mountain Highway and Dunlop Court, is 400m from the Bayswater train station and activity centre.

“For us the site presented as a unique opportunity to expand our industrial portfolio and get a foothold in the tightly held Bayswater industrial market” Brix Property Group managing director, Adam Brick, said.

“The extensive highway frontage fits with our targeted approach for industrial assets with excellent main road exposure which provides added redevelopment and repositioning opportunities.

“The leaseback period provides us with some time to decide whether a redevelopment or repositioning of the site is the best path ahead at the expiry of the lease.”

▲ Brix and Costa teamed up for the $19-million purchase of a 6.65ha industrial land parcel at Seaford.
▲ Brix and Costa teamed up for the $19-million purchase of a 6.65ha industrial land parcel at Seaford.

Brick said the acquisition aligned with the group’s flexible procurement approach which includes targeting sites that are both prime for active redevelopment and/or tenanted assets.

The Bayswater property is the second joint venture acquisition this year and the third overall for the Brix Property Group and Costa Asset Management partnership.

It follows the $19-million purchase of a 6.65ha industrial land parcel at 300 Frankston-Dandenong Road, Seaford, which is earmarked for a redevelopment designed by Watson Young Architects.

The settlement of another industrial development site in Lower Dandenong Road, Mordialloc, is due in early 2022 and construction also is expected to commence on a Brix/Costa service station site at Charlemont in Geelong.

Brix also has started construction on a 17-townhouse sell-out development and also was recently granted a planning permit for the 54-lot subdivision of a land parcel at Mernda in Melbourne’s north-east.

It is also understood the group is looking to expand north and has been scouting for development opportunities in Queensland.

Show Comments
advertise with us
The Urban Developer is Australia’s largest, most engaged and fastest growing community of property developers and urban development professionals. Connect your business with business and reach out to our partnerships team today.
Article originally posted at: