Situated at 40 Decco Drive, Campbellfield, in the heart of Melbourne’s growing northern corridor, the 9,364sqm industrial facility will be used by Scania for its spare parts business.
Offering multiple loading areas, high clearances and extensive turning capabilities, the modern industrial facility will deliver a rental return of approximately $850,000 per annum.
Acquired in late 2020 through a Centennial Industrial & Logistics global partnership, the property forms part of a larger 35,790sqm site, with approval imminent on plans to develop 7,500sqm of additional built-form across two separate buildings, which will see the site valued at around $35m on completion.
Paul Ford, Centennial Property Group’s Executive Director & CEO of Industrial says the agreement further confirms Centennial’s investment strategy in the industrial and logistics space.
“This transaction allows us to continue executing our strategy of acquiring modern and highly functional assets that offer the potential for flexible improvements and expansion at close to or at land value,” he explained.
“The decade-long lease to Scania further underscores our investment thesis and will allow us focus on developing out the balance of the site in a prime “mid-space” logistics estate, in order to enhance investor returns.
“This purchase also expands our national investment portfolio of more than 30 industrial and logistics assets in Melbourne, Sydney, Brisbane and Adelaide.”
According to Daniel Eramo, Associate Director, Industrial and Logistics at leasing agents CBRE, the transaction underlined the current strength of Melbourne’s industrial leasing market.
“Prime grade distribution and logistics centres within Melbourne’s north continue to be highly sought-after by occupiers, and this is paving the way for an influx of speculative development through the final quarter of 2021 and into the first quarter of 2022, as the market attempts to meet the increased demand,” he said.