Industrial developer Gibb Group is in talks with institutional investors vying for its new $30 million-plus Darwin facility, with the area’s industrial market under-pinned by mining and resources.
Sitting close to the Port of Darwin and the Adelaide to darwin freight train terminal, the mooted asset is pre-leased to transport and logistics provider Northline on a 12-year lease.
More than $200 million in private development has been committed to date in the Darwin Business Park. Neighbouring sites to the 40,000sqm Gibb Group development are owned by the likes of Charter Hall and Goodman Group.
The Australian Financial Review understands Gibb Group has been in discussions with these owners and several others. Industry sources suggested investment interest in the site, which has a gross lettable area of 14,800sqm, could represent a yield in the higher 7 per cent range. Gibb Group declined to comment. CBRE’s Matt Haddon and Chris O’Brien who are quietly marketing the site, could not be reached for comment.
Darwin proximity to Asia is making it a popular investment choice and the area has billions of dollars worth of infrastructure and development projects. More than half of the local export are shipped from the northern ports of Australia.
AFR – 20 November 2014