Commercial hammer prices

Commercial hammer prices
Larry SchlesingerDecember 8, 2020

How much a Charter Hall Group-managed fund has paid to acquire the Cromwell Property Group’s Masters Distribution Centre at Hoppers Crossing, in Melbourne, reflecting a yield of 8.1%. The price was in line with the current carrying value and most recent independent valuation at December 31, 2011.The 52,364-square-metre property is 100% leased and is used by Woolworths as a distribution centre for the Masters Hardware business.  The property has a weighted average lease expiry of 8.5 years.  Cromwell chief executive Paul Weightman says the company negotiated a new 10-year lease with Woolworths in 2011, but believes it can achieve a higher medium-term return by investing in assets elsewhere. The sale was negotiated by Tony Iuliano, Colliers International national director of industrial.


How much equipment shelter designer and manufacturer ICS Industries has paid for high-exposure corner site in Thomastown representing an initial yield of 9%. The 27,200-square-metre site is located at 309 Settlement Road and includes an older-style industrial building with a net lettable area of 6,896 square metres, The property includes a substantial concrete yard with 193 car spaces and five points of entry.  The marketing campaign was steered by CBRE’s Dean Hunt and Matt Sampson on behalf of BBC Hardware Properties (VIC) Pty Ltd. The property was sold to an owner occupier with a 15-month leaseback to Bunnings Warehouse to allow for the completion of its new store. Thomastown is located approximately 17 kilometres north of the Melbourne CBD.


How much a self-managed super fund has paid for a tenanted medical centre close to the Canberra Hospital has been sold by Ray White Commercial Canberra. The 158-square-metre property at 1/60 Garran Place, Garran, was negotiated by Ray White Commercial Canberra director Andrew Smith on behalf of owner-occupier medical practitioners, who have leased the centre back on a three-year term on an annual starting rent of approximately $65,000. The sale represents a net yield of around 8%. The unit is located in a highly sought after area and is only 500 metres to Canberra Hospital. It last traded for $389,070 in 1992.


How much an office/warehouse located in an established warehouse and factory complex in east Melbourne has been sold in a campaign by Ray White Commercial Manningham’s David McGuinness. The 370-square-metre property in Thornton Crescent, Mitcham, was sold to a private investor on behalf of a long-term owner. McGuinness says the warehouse complex is currently leased on a two-year lease at $36,000 per annum plus GST and outgoings. The warehouse is located just off Rooks Road near Whitehorse Road around 20 kilometres east of the Melbourne CBD within a five-minute drive of the Eastern Freeway.


How much the Industry Superannuation Property Trust has paid for the Pakenham racecourse site. Melbourne-based ISPT was one of three final bidders for the property when last listed in early 2011, after which the conditional sale to the Corcoris Group fell through. It was at a reputed $38 million. The 27-hectare site about 55 kilometres south-east of the Melbourne CBD is expected to be carved up into 500 house lots after the state government rezoned the racecourse to comprehensive development zone in 2010.




Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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