Gibb Group has sold a purpose-built industrial property in Melbourne’s west to a private investor for $21.4 million. Gibb Group developed the property for the Kraft Food Company and sold it on an 8.2 per cent yield.
The facility, on 46,650sqm of land, fronts the Western Ring Road in the Paramount Industrial Estate in Derrimut. Qanstruct completed work on the warehouse last month.
Gibb Group director, Matthew Gibb said there had been few pre-lease transactions of this significance during the past year, but there had been an increase in pre-lease enquiries during the first half of 2012.
He said Gibb Group had more than $100 million of potential development in the pipeline across Australia, and wanted to use them for an industrial property fund or sell pre-committed asses into private syndicates. “What I am aiming to do is seek like-minded investment partners to work with us to secure these types of assets as a long-term investment,” he said.
Tony Iuliano of Colliers negotiated the sale, and said about $90 million worth of industrial property had changed hands in Victoria during the past two months.
He expected stable rents to remain across both prime and secondary grade stock in the industrial market, but said rental pressure would increase over the next year or two across all markets.
“Due to the growing shortage of available prime-grade built product and ready-to-build-on land in key transport rich locations, the steady pattern seen in 2011, will also see prime-grade yields compress an values rise in 2012,” he said.
AFR – 18 July 2012