A PRIVATE Melbourne family is offering a portfolio of four large format retail and industrial assets across Braeside and Ballarat.
Known as the Commercial Collection, the portfolio offers assets of including a large industrial investment property in the tightly held Braeside precinct and a large format retail investment in the growing Wendouree (Ballarat).
Danny Clark, Andrew Waddell and Andrew Greenway from Gross Waddell ICR, alongside Mary O’Halloran from Mindacom Real Estate, have been appointed to manage the expressions of interest campaign, with the properties being offered individually or collectively.
“This portfolio offers a diverse range of assets which have been strategically acquired over the years as they occupy prime positions within tightly held precincts. Braeside is an industrial infill precinct with limited vacancy and limited land remaining, whereas Wendouree is a proven large format retail hotspot nestled adjoining HomeCo Ballarat and Stockland’s Wendouree Shopping Centre,” said O’Halloran.
The Braeside property comprises a 28,550sqm industrial landholding securely leased to Toro Australia, bringing in $1,456,162.5 net per annum, with rental reversion or value-add upside.
The Wendouree (Ballarat) property includes a circa 16,650 sqm Commercial 2 Zone landholding, leased to Amart Furniture and bringing in $669,910.63 gross per annum, with further value available through its limited circa 34% site coverage.
“The 2 showstoppers are the leased investments with reputable tenants being Amart Furniture and Toro Australia. Each asset boasts significant income streams but also offer reversionary upside at market review or value-add potential (STCA) post lease expiration,” said Clark.
The remaining two assets comprise warehouses at 13 Downard Street, Braeside with building areas ranging from circa 900 sqm – 1,224 sqm and are leased to September or October 2024.
“The two (2) smaller warehouses in Braeside are ideal owner occupier properties as warehouses of this size are fiercely contested in today’s market, with prices achieving upwards of $3,500 per sqm of building in the surrounding area,” said Greenway.
The expressions of interest campaign for the Commercial Collection is scheduled to close on 28 June 2023.
“As the industrial rents continue to rise across Australia, buyers will see value in this portfolio due to the below market rents. With close to a 25% rental growth over the past 12 months, we anticipate the rental growth story will remain strong this year and will provide opportunity for savvy investors/ value add operators,” said Waddell.
According to Savills, rents are surging at a rate of more than seven times their 15-year average, with prime rents on the east coast having grown by nearly 40% over the past three years and secondary rents by 45%, with some sub-markets experiencing growth above 50%.
