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.