Syndicate Purchases Charter Hall Portfolio

An interstate investment syndicate has paid circa $6.5 million for a small Charter Hall leasehold industrial portfolio on Melbourne Airport’s fringe at Tullamarine.

According to Savills’ Industrial Directors, Chris Jones and Ben Hegerty, the modern industrial facilities with secure leases to quality tenants had attracted a strong response from the investment market.

"This was both a strong result for the vendor and a fantastic investment opportunity for the purchasers with a solid lease profile in an outstanding location adjacent to the Melbourne International Airport featuring excellent prime road transport infrastructure and potential for market growth,’’ Mr Jones said.

Mr Hegerty said the properties at 1 Jets Court, 15 Jets Court, and 95-99 South Centre Road, Tullamarine within Melbourne Airport Business Park, leased to Qantas Road Express, Gibson Freight Australia, and DSV Air and Sea, had a weighted average lease expiry of 4.5 years, and the sale represented an equated market yield of circa 8 per cent.

The three modern office and warehouse facilities totalled 10,642 square metres on a combined land area of 28,051 square metres on the southern boundary of the Airport with quick access to the Western Ring Road and Calder and Tullamarine freeways.

Mr Jones said investors had shown a strong appetite for good quality industrial assets in prime locations and with secure lease profiles.

He said the assets also offered ongoing depreciation benefits and an investment at below replacement cost.

The deal is the fourth property Mr Jones and Mr Hegerty have sold on the Airport fringe recently following the sale of Melbourne International Airfreight Centre - a 26,500sqm office/warehouse on 5.7 hectares - at 1 International Drive, to Warrington for $23.85 million.