Melbourne

IOOF Investments acquires $20m of new assets signalling a strong year for the Altona North industrial hub

Tight leasing conditions in Altona North’s industrial market is underpinning strong investor interest in the area, with innovative fund manager IOOF Investments purchasing two adjacent facilities totalling circa $20 million.

08 Mar 2018

Tight leasing conditions in Altona North’s industrial market is underpinning strong investor interest in the area, with innovative fund manager IOOF Investments purchasing two adjacent facilities totalling circa $20 million.

96-118 Toll Drive is a 5,175sqm facility located on a substantial landholding of 24,380sqm. The property is fully leased to Top 5 Wharf Cartage company Arrow Worldwide and sold with a 4.5-year WALE.

The second property, 87-107 Toll Drive, is a new, state-of-the-art industrial and logistics facility currently tenanted by Supercheap Storage and Arrow Worldwide. Completed in December 2017, the 6,502sqm facility is located on a 1.82ha landholding and was sold with a 7.3-year WALE. 

CBRE Rory Hilton and Ben Hegerty managed the sale of the two properties, both located on the precinct’s major thoroughfare, Toll Drive, to IOOF on behalf of separate vendors Heathley Limited and Pelligra Group.

Mr Hilton said the properties offered an attractive investment-scale opportunity in the popular inner west industrial precinct. 

“Altona North is regarded as the first core industrial precinct in Melbourne’s West – making it a sought-after location for Port operators,” Mr Hilton said. 

“With significant infrastructure upgrades such as the Western Tunnel project commencing shortly, this area will become even more desirable given the improved access for road freight to the Port these projects will create. 

Simon Gross, Head of Property at IOOF Investments commented: “These two high quality assets are a perfect fit for our rapidly growing and highly successful Australian property trust.”

“We are delighted to have identified and acted upon this unique double purchase opportunity with the assistance of CBRE, Heathley and Pelligra.”

He added: “The inclusion of the Altona assets adds further diversification to the IOOF direct trust that now boasts 15 modern and well leased industrial and commercial properties.”   

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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.