A $33.3 million industrial asset has changed hands as the industrial property sector continues its bullish run.
Real estate fund manager EG acquired the industrial estate in Melbourne’s south-east.
The Glen Waverley site which spans 635-645 Waverley Road and 9,11 and 11a Aristoc Road joins EG’s No.2 fund, launched in August 2016 as a $750 million real estate fund.
The sizeable 30,786sq m landholding is the fifth asset to join the fund which aims to grow to 10-15 assets.
It follows EG’s purchase of an office building in Sydney’s northwest suburb of Pennant Hills for $32 million in June.
EG Capital Transactions associate director Sean Fleming said the latest acquisition is in line with the fund’s strategy to acquire a portfolio of yield producing real estate with repositioning potential, near new or upgraded infrastructure likely to benefit from urban renewal.
“There is significant potential to reposition the asset through capital upgrades to capture the market rental uplift in the strong performing South East Melbourne Industrial market,” Fleming said.
The surrounding precinct is undergoing almost $1 billion of private investment and development.
Colliers International’s latest H2 Industrial Report describes the industrial property market as a critical and high-performing component of the Australian economy, bolstered by the rise of the eCommerce sector “a key catalyst for the growth of Australian industrial property”.
Continued demand for industrial space is further supported by a massive investment program in infrastructure across the country
The Colliers research reveals the total investment transactions in Melbourne for 2018 currently sits at $183.88 million, with sales concentrated in the outer east and west.