• News

53-61 HORSBURGH DRIVE, ALTONA NORTH

Posted on 11 September 2009

A new industrial office warehouse recently developed by Toll Holdings Limited, at 53-61 Horsburgh Drive, Altona North, has been sold for $22.0 million to a private Melbourne investor, representing a yield of 8.0 per cent; a result that the agents argue is one of the best industrial sales for some time. The property comprises a purpose-built office warehouse of 18,100 square metres, 4,264 square metres of awnings on land of 5.416 hectares. A substantial component of the improvements comprises 30,000 square metres of medium to heavy duty hardstand. The property is currently under construction and is being built to the specific requirements of NQX Freight Systems, which is a wholly owned subsidiary of Toll Holdings Limited. Toll will leaseback the facility for 12 years from settlement. The Toll Property Group purchased the 50 hectare former DOW Chemicals site some years ago to develop a new industrial estate primarily to house many of its logistics business units. The total site comprised some 50 hectares with a substantial frontage to Kororoit Creek Road. Some of the major occupiers in the area include Nestle, Coles Group, Toyota Australia, Target Australia, SCT Transport Fowlers Motor Group and many more. "This result is testament to the strength of the private investor market and the lack of quality industrial investment stock currently available for sale. We are seeing private high net worth investors are prepared to step up for premium quality property assets. Obviously the 12 year lease covenant to Toll together with significant depreciation benefits were major factors in determining the suitability of this asset," said Joseph Carbone, Director of Vinci Carbone Property. Michael Fox, Director of Property at Toll added that, "this was the second parcel of land Toll had purchased to develop logistics facilities to house a number of Toll's business units. Toll's first purchase in Altona was the former BP Oil Refinery 10 years ago and Toll has successfully developed and on sold eight buildings in the first estate on long leaseback arrangements". It has been a while since we have seen a result like 8 percent for an industrial property over $20 million. We have seen some smart private money start to come into the market of recent months," he said.