 Asset Class: | Industrial |
 Price: | $ 17250000 |
 Net Yield: | 6.50 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
<b>Large Landholding with Premium Logistics Asset - Buy Far Below Replacement Cost</b><br><br>This exceptional opportunity combines a substantial landholding, a premium logistics facility, and compelling financial fundamentals.<br><br><br><b>Strategic Landholding at Land Value:</b><br><br>The property features a significant 16,440 sqm of prime industrial land, located in Melbourne's largest logistics precinct. With land values ranging conservatively assessed from $850–$900/sqm, the implied land valuation alone is <b>$13.97M–$14.8M</b>, meaning this acquisition is priced close to land value while including a high-quality warehouse. Please see recent land sales in Melbournes West below.<br><br><br><b>Buy Below Replacement Cost:</b><br><br>A 5184 sqm high bay warehouse, built to a medium finish, has a replacement cost estimated between <b>$7.77M–$9.49M</b> (Without taking capital & holding costs into consideration)<br>Combined with the land value, the total development cost would exceed <b>$21.74M–$24.29M</b>, compared to the current purchase price of $17.25M, offering significant medium and longterm upside.<br><br><br><b>Strong Holding Income:</b><br><br>Secured by a lease to Streamlined Supply Chain Pty Ltd, the property generates a net rent of <b>$1,124,040 p.a</b>., providing a stable <b>6.5% net</b> yield. The strong cash flow makes it easy to hold the asset while benefiting from Melbourne’s ongoing industrial growth.<br><br><br><b>Long-Term Growth in Melbourne's Logistics Hub:</b><br><br>Located just 11km from Melbourne CBD, with proximity to key transport links like the West Gate Freeway (2km) and Port of Melbourne (5km), the site is positioned in a high-demand precinct characterized by <b>sub-2% vacancy rates</b> and robust rental growth projections.<br><br>This is a rare opportunity to acquire a large landholding at near land value, benefit from strong holding income, and secure long-term capital appreciation in one of Australia’s most sought-after industrial markets. Let’s discuss how this asset can fit into your portfolio.
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
Tottenham is strategically positioned as one of Melbourne’s premier last-mile logistics hubs, offering unparalleled connectivity to key transport infrastructure. Situated just 11km from Melbourne’s CBD, the area provides rapid access to the West Gate Freeway and CityLink, ensuring seamless distribution across Melbourne’s metropolitan area. Additionally, Tottenham is located just 5km from the Port of Melbourne, the busiest container port in Australia, facilitating efficient import and export operations. This proximity to the port, combined with its central location within Melbourne’s expansive logistics network, makes Tottenham a highly sought-after location for last-mile distribution, enabling businesses to optimize delivery times and reduce operational costs. With industrial vacancy rates in Melbourne at historic lows, Tottenham continues to be a critical node for logistics and supply chain activities.<br><br>o 11km from Melbourne CBD<br>o 2km to West Gate Freeway<br>o 5km to Port of Melbourne
Additional Location Information FileStreamlined Logistics, established in 2014, is a dynamic and forward-thinking company specializing in logistics and supply chain management. The company offers customized warehousing, transportation, and supply chain solutions, emphasizing a deep understanding of client needs to provide tailored services. <br><br>The Australian logistics sector is experiencing significant growth, with projections estimating the market will reach USD 130.4 billion by 2024. This expansion is driven by infrastructure investments and the rise of e-commerce, providing a robust environment for companies like Streamlined Logistics to thrive. <br><br>Streamlined Logistics' commitment to evolving with market demands and maintaining excellence in service delivery positions it well for sustained success in the burgeoning Australian logistics industry.
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<b>Tenancy Details:</b><br><br>• Tenant: Streamlined Supply Chain Pty Ltd<br>• Type of Rent: Commercial Net<br>• Rent (Net): $1,124,040 p.a.<br>• Lease Term: 5 + 5 years<br>• Commenced: December 2024<br>• Rent Review: 3.75% fixed annual increases<br>• Market Review: At option<br>• Options: 1 x 5 years<br>• Security: TBC<br>• Outgoings: 100% by tenant (including land tax)<br>• Permitted Use: Logistics and supply chain
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Rental Comparison: Address | Total size [Land] NLA | Rent $/sqm 531-533 Geelong Road & 432 Francis Street, Brooklyn | [9800] 3250 sqm | $71/sqm 525 Geelong Road, Brooklyn | [23900] 3655 sqm | $150/sqm 1 Quarry Road, Tottenham | [40700] 8091 sqm | $170/sqm 7-9 Chambers Road, Altona North | [10600] 7732 sqm | $108/sqm Recent Property Sales: Address | Total size [Land] NLA | Sale $/sqm 8-10 James Court Tottenham | [3795] 2243 sqm | [$1225/sqm] $2073/sqm 512-520 Geelong Road, Tottenham | [47000] 30371 sqm | [$851/sqm] $1317/sqm 4 James Court, Tottenham | [1215] 850 | [$2447/sqm] $3494/sqm Recent Sales (Land only): Address | Total size Land | Sale $/sqm 62 and 2 Doriemus Drive and Pauljoseph Way, Truganina | 14,576 sqm | $880/sqm 24 Doriemus Drive, Truganina | 9,132 sqm | $810/sqm 531-533 & 432 Ashley Street & Francis Street, Brooklyn | 9,782 sqm | $1,073/sqm 57 Patch Circuit, Laverton North | 10,000 sqm | $880/sqm 65 National Drive, Truganina | 7,041 sqm | $866/sqm 21-27 Plummer Road, Laverton North | 8,148 sqm | $1,117/sqm 52 National Drive, Truganina | 7,248 sqm | $825/sqm Lot 5A, 13 Kingswood Place, Ravenhall | 7,482 sqm | $1,211/sqm 52-54 Pipe Road, Laverton North | 23,100 sqm | $869/sqm 500-528 Somerville Road, Sunshine West | 10,609 sqm | $1,060/sqm Lot DD, 20 Distribution Drive, Truganina | 10,230 sqm | $841/sqm 8 Agar Drive, Truganina | 21,182 sqm | $850/sqm Lot EE, 20 Distribution Drive, Truganina | 19,940 sqm | $840/sqm 44 National Drive, Truganina | 7,232 sqm | $842/sqm 9 Somers Road, Sunshine North | 7,741 sqm | $790/sqm 170 Ashley Street, Maidstone | 7,318 sqm | $1,097/sqm 46 Burke Street, Braybrook | 12,820 sqm | $1,056/sqm
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<b>Financial Metrics:</b><br><br>• Purchase Price: $17.25 million<br>• Net Yield: 6.50%<br>• Net Rent: $190 / sqm (blended rate)<br>• Purchase Rate (on NLA): $2,914 / sqm<br><span style="color:rgb(51, 51, 51);">• Purchase Rate (on Land): $1,049 / sqm</span><br><br><b>Asset Overview:</b><br><br>• Asset Class: Industrial/Logistics<br>• Composition of Asset: Warehouse, offices, hardstand, and canopies<br>• Property Market Status: Off market<br>• Age of the Asset: Around 30 years<br>• Any Unapproved Structures On-Site: None identified<br>• Owner's Reason for Selling: Vendor (Centennial) is exiting; recently refurbished and leased the property and is offering it to market with an upgraded facility.<br>• Are the Seller & Tenant Related Parties? No<br>• How Long Has the Current Tenant Been On-Site: December 2024<br>• Vacancy: Leased - if vacant 6-12 month<br>• Flood Zone: No<br><br><b>Property Features:</b><br><br>• Land Area: 16,440m²<br>• Building Area: 5,916m²<br>o Warehouse: 5,184m²<br>o Internal Office & Amenities: 406m²<br>o External Office: 326m²<br>o Canopies: 922m²<br>o Heavy-Duty Hardstand: 3,250m²<br>• Site Coverage: 35%<br>• Car Spaces: 60 marked spaces<br>• Frontage: Alick Road with drive-around truck access<br>• Signage: Visible from Alick Road<br>• Fit Out:<br>o 9.7m high clear-span warehouse<br>o Upgraded rear hardstand suitable for heavy-duty use (previously container storage)<br>o Multiple on-grade roller doors<br>o Recently painted façade, landscaping, and roof improvements<br>• Lifts: No<br>• Roller Doors: Yes<br>• Zoning: IN1Z - Industrial 1 Zone
