 Asset Class: | Industrial |
 Price: | $ 18500000 |
 Net Yield: | 6.20 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
This is a rare opportunity to secure a premium industrial asset in Melbourne’s booming northern corridor. Leased to <b>NetworkPak Pty Ltd</b>, a national leader in packaging manufacturing, this 9,130 sqm facility sits on a large <b>18,050 sqm site, just 14 km from Melbourne CBD.</b><br><br>With a <b>12-year net lease</b> to 2035, fixed 3.5% annual rent increases, and a strong 6.2% yield, this is a low-maintenance, high-growth investment. Industrial vacancy rates are at extremely low levels, making well-located assets like this highly sought after.<br><br>Recent $2.8M+ refurbishments, including power upgrades, flooring, roofing, and office fit-outs, make this a turnkey, future-proof industrial powerhouse. With a projected 2030 value of $23.51m+, this asset offers strong capital growth and passive income with minimal effort.<br><br>This is a set-and-forget industrial investment, delivering secure cash flow, strong lease terms, and capital appreciation in a high-demand location.
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<b>Thomastown</b> is a key industrial and commercial precinct in Melbourne’s rapidly growing northern corridor, located just 17 km from the CBD. It sits within the City of Whittlesea, one of Victoria’s fastest-growing municipalities, playing a crucial role in Melbourne’s logistics, manufacturing, and retail sectors.<br><br><b>Strategic Connectivity & Logistics Advantage</b><br><br>• Melbourne CBD: 17 km south, ensuring excellent access to the state’s economic center.<br>• Melbourne Airport: 15 km northwest, providing efficient national and international freight links.<br>• Port of Melbourne: 20 km south, Australia's busiest container port, enabling seamless trade and distribution.<br>• Major Transport Links: Immediate access to the Metropolitan Ring Road (M80), Hume Freeway, and Craigieburn Bypass, offering unrivaled connectivity for industrial and logistics operations.<br><br><b>Demographics & Population Growth</b><br><br>• Current Population (City of Whittlesea): Over 242,000 residents, projected to exceed 380,000 by 2041—a 56% increase.<br>• Thomastown Population: 20,224 residents, expected to grow 21.3% by 2038.<br>• Workforce: Large, skilled labor pool with a strong presence in manufacturing, logistics, and distribution industries.<br>Economic Significance & Business Growth<br>• Gross Regional Product (GRP): Over $10 billion, making Whittlesea a key contributor to Victoria’s economy.<br>• Major Employers: Home to leading industrial and logistics companies, including Visy, Bunnings, Woolworths Distribution Centre, and NetworkPak.<br>• Industrial Vacancy Rates: At record lows, reflecting strong demand for well-located industrial assets.<br><br><b>Infrastructure & Government Investment</b><br><br>• Epping Freight and Logistics Hub: A major distribution and logistics center driving industrial expansion.<br>• Melbourne Food Innovation & Export Hub (MFIX): Positioning the region as Victoria’s leading food manufacturing and export hub.<br>• Transport Upgrades: Ongoing government investment in roads, rail, and infrastructure to support business growth and connectivity.<br><br><b>Gentrification & Rising Property Values</b><br><br>• Rising Residential Demand: Housing prices in the area are rising due to population growth, infrastructure upgrades, and affordability compared to inner Melbourne.<br>• Government Backing: $7.1 million Federal funding for infrastructure to support new housing, commercial developments, and employment growth.<br>• Retail & Lifestyle Expansion: Significant retail and commercial investment, including Westfield Plenty Valley, Epping Plaza, and major national retailers driving urban renewal.<br>
Additional Location Information File<b>NetworkPak Pty Ltd – Strong & Reliable National Tenant</b><br><br>NetworkPak Pty Ltd is a leading Australian manufacturer specializing in high-quality printed folding cartons. The company was originally founded in 1972 as CP Gluing by Charlie Powell, evolving into NetworkPak in 2010 to meet growing market demand for complete folding carton solutions. Today, NetworkPak is a national tenant with key customers across Australia, serving industries such as food and beverage, pharmaceuticals, FMCG, and personal care.<br><br><b>Company Overview</b><br><br>Industry: Packaging and Containers Manufacturing<br><br>Specialization: Custom folding cartons for major industries nationwide<br><br>Location: Thomastown, Victoria<br><br>Years in Operation: Over 50 years (since 1972)<br><br>Ownership: 100% Australian privately owned<br><br>Employee Count: Estimated at 159 employees<br><br><b>Why NetworkPak is a Strong Tenant</b><br><br>✔ Established Industry Presence – With over five decades in operation, NetworkPak has proven resilience and reliability in the packaging industry.<br><br>✔ National Customer Base – Servicing key customers across Australia, the company benefits from a diverse and stable client portfolio, reducing risk and ensuring strong financial stability.<br><br>✔ Commitment to Innovation – Investments in advanced machinery, including a KBA press with integrated camera technology and modern gluing systems, reinforce the company’s focus on efficiency and high-quality production.<br><br>✔ Experienced Leadership – The Powell family’s long-term ownership and strategic direction since 1995 have driven consistent growth and operational stability.<br><br>✔ Strategic Location – Operating from Thomastown, Victoria, the company is based in a prime industrial hub with excellent distribution and logistics capabilities.
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Address | Total GLA | Rent: $ / sqm 360-366 Settlement Road, Thomastown | 9,130 sqm | $125/sqm 10-18 Lucknow Crescent, Thomastown | 3,008 sqm | $145/sqm Warehouse 5, 21-35 Radford Road, Reservoir | 3,285 sqm | $163/sqm Warehouse 4, 21-35 Radford Road, Reservoir | 4,046 sqm | $165/sqm 7/11 Industrial Avenue, Thomastown | 3,370 sqm | $131/sqm 53-63 National Blvd, Campbellfield | 4,550 sqm | $140/sqm 309 Settlement Road, Thomastown | 9,875 sqm | $132/sqm 1/90-118 Bolinda Road, Campbellfield | 3,529 sqm | $165/sqm Warehouse G, 33-44 Raglan Street, Preston | 6,236 sqm | $135/sqm Building 9-11 Somerton Park Drive, Campbellfield | 8,017 sqm | $148/sqm 3A, 400 Mahoneys Road, Campbellfield | 4,183 sqm | $150/sqm 1-5 Wirrigirri Close & 57-61 Gawan Loop, Coburg North | 4,947 sqm | $145/sqm
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✅ <b>Prime Thomastown industrial location</b> with direct access to the Metropolitan Ring Road, surrounded by major retailers like JB Hi-Fi, Bunnings, and McDonald’s.<br><br>✅ <b>Secure 12-year net lease</b> to NetworkPak Pty Ltd with <span style="font-weight:normal;">3.5% fixed annual increases, ensuring stable, growing income.</span><br><br>✅ <b>High-quality asset</b> with <span style="font-weight:normal;">$2.8M+ in upgrades, including flooring, roofing, office fit-outs, and a 2,450 Amp power supply.</span><br><br>✅ <b>Below replacement cost</b>—acquisition well below the <span style="font-weight:normal;">$33.65m+ estimated replacement value.</span><br><br><span style="color:rgb(51, 51, 51);">✅ </span><span style="color:rgb(51, 51, 51);"><b>Purchase at land value</b></span><br><span style="color:rgb(51, 51, 51);font-weight:normal;">Land value: $17.15m - Sale price: $18.5m</span><br><br>✅ <b>Rental upside</b>—current rent of <span style="font-weight:normal;">$125/sqm is under market rates ($145/sqm), providing strong growth potential.</span><br><br><span style="color:rgb(51, 51, 51);">✅ </span><span style="color:rgb(51, 51, 51);"><b>Rethink Renewables: </b></span><span style="color:rgb(51, 51, 51);font-weight:normal;">The tenants large energy consumption is ideal to add solar. Decrease the tenants energy costs while increasing the properties yield.</span><br><br><br><b>Financial Metrics</b><br><br>• Purchase Price: $18.5m<br>• Net Yield: 6.2%<br><br>• Net Rent per sqm: $125/sqm<br>• Purchase Rate (on NLA): $2,027/sqm<br>• Purchase Rate (on Land): $1,025/sqm<br><br>• Current Rent: $1,147,592 p.a. + GST<br>• Rental Growth: Fixed 3.5% annual increases<br><br><b>Rental Upside</b><br><br><span style="font-weight:normal;">If leased at the market rate of </span><b>$145/sqm</b><span style="font-weight:normal;">, the property's annual rent would be $1,323,850, bringing its current market value today to </span><b>$22m</b><span style="font-weight:normal;"> at a 6% cap rate. While this can't be realized at this stage, it reflects strong deal fundamentals, making this a great purchasing opportunity.</span><br><br><b>Appreciation through fixed rent increases</b><br><br>• Projected Rent in 2030: $1,410,684 p.a.<br><br>• Projected Value in 2030:<br>6% cap rate: $23.51m<br>5.5% cap rate: $25.65m<br>5% cap rate: $28.21m<br><br><span style="font-weight:normal;">As Australia enters a monetary easing cycle, expected interest rate cuts will make borrowing more affordable, attracting more investors to the market. Lower rates widen the spread between property yields and financing costs, increasing demand and often times leading to cap rate compression—which, in turn, drives up asset values.</span><br><br><b>Asset Overview</b><br><br>• Type: Industrial Logistics/Manufacturing<br>• Location: Thomastown VIC, 14 km north of Melbourne CBD<br><br>• Site Area: 18,050 sqm<br>• Building Area: 9,130 sqm<br>• Frontage: 107.59m to Settlement Road<br>• Zoning: Industrial 1 Zone (IN1Z)<br>• Car Spaces: 83<br>• Roller Doors: Seven<br>• Signage: High-exposure frontage<br>• Flood Zone: No<br>• Vacancy: Tenanted (Leased within 7 days of last vacancy)<br><br>• Owners' Reason for Selling: Professional buyer that purchased, refurbished, and re-let, now looking to divest and take profits<br><br>• Are Seller & Tenant Related Parties? No<br><br>• How Long Has the Tenant Been On-Site? Since March 2023<br><br>• Last Sold / Price: May 2022 / $15.4m
