The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
4
print
Print
OtherTaryn ParisWed 15 Sep 21

Wine Warehouse Value Grows 160pc as Logistics Boom

3223c239-7935-4669-a9c5-7448d351ecb0

The Jreissati family has banked a cool $50 million for its Port Melbourne industrial asset after selling the property in an off-market expressions-of-interest campaign to a German investment group.

The family paid $31 million for 262 Lorimer Street in 2014—it transacted this month for $81.6 million at a sub-4 per cent yield (3.6 per cent), a 160 per cent increase in value over seven years.

Rathbone Wine Group, owners of Yering Station Winery in the Yarra Valley and Xandadu Wines in Western Australia, will continue to run its headquarters from the temperature-controlled warehouse and office after signing a 13-year lease with a fixed annual rental growth of 2.75 per cent.

Dawkins Occhutio director Chris Jones, who brokered the off-market sale to Institutional Investment Group, said it was the strongest price in industrial assets in Victoria avid was unheard of”.

“We expect continued occupier demand will continue to deliver strong and sustained rental growth over the medium to longer term as yields bottom out and the supply of more affordable land is exhausted,” Jones said.

Jones forecasted a continued yield compression at the lower end of the range in the immediate future, while limited investment opportunities would maintain downward pressure on yields into the future.

Another German investment fund moved in on South Australia’s industrial and logistics market earlier this year to spend $98 million on Treasury Wine’s warehouse facility at Penfield.

It was billed as the biggest industrial transaction of the year for South Australia at a market yield of 5.1 per cent.

The 1.69ha site at Lorimer Street overlooks the Yarra River and comprises a 15,246sq m building, a four-level office, a cafe and multi-storey car park.

Jones said there had been multiple bidders for the property, which has a good long-term tenant in place, prime location and transport and port access, within the Fishermans Bend precinct.

JLL’s head of industrial for Victoria Matt Ellis said the occupier market for industrial space was very competitive, particularly in Melbourne's west.

“Most occupiers in the Melbourne market are in continuous competition for space, with several groups often working through negotiations for any available assets simultaneously,” Ellis said.

“Despite the increasingly tight availability of existing space, we are still seeing significant deal flow across the market.”

IndustrialAustraliaMelbourneReal EstateDeal
AUTHOR
Taryn Paris
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
Forme's James Place on James Street, Fortitude Valley Brisbane
Exclusive

Forme Pushes the Boundaries on James Street Precinct

Renee McKeown
4 Min
Exclusive

Invicta House Rebirth Proves Recipe for Heritage Success

Leon Della Bosca
7 Min
Exclusive

Freecity’s $300m PBSA to Prove Worth of Modular at Scale

Leon Della Bosca
7 Min
Exclusive

Billbergia’s John Kinsella: Whiskey, Fun and a Fear of Heights

Vanessa Croll
8 Min
View All >
HWL Ebsworth's adaptive reuse plan for 5 martin Place Sydney
Office

Martin Place ‘Money Box’ Revamp Plans Filed

Leon Della Bosca
QBCC PCA Breakfast EDM
Residential

Queensland Developer Licensing Scheme Axed

Clare Burnett
South Molle Island before Cyclone Debbie
Hotel

South Molle Island on Block as Chinese Owners Exit

Leon Della Bosca
Chinese owners reportedly seek $30m after $25m purchase as Whitsundays tourism market attracts billionaire investment…
LATEST
HWL Ebsworth's adaptive reuse plan for 5 martin Place Sydney
Office

Martin Place ‘Money Box’ Revamp Plans Filed

Leon Della Bosca
4 Min
QBCC PCA Breakfast EDM
Residential

Queensland Developer Licensing Scheme Axed

Clare Burnett
5 Min
South Molle Island before Cyclone Debbie
Hotel

South Molle Island on Block as Chinese Owners Exit

Leon Della Bosca
4 Min
Hindmarsh Tiers Retreat HERO
Hotel

Eco-Luxury Retreat Revealed for SA’s Fleurieu Peninsula

Leon Della Bosca
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/wine-warehouse-value-grows-160pc-in-logistics-boom