Melbourne Markets at Epping sold in $77 million deal

The new Melbourne Markets warehouses have been sold for $77.4 million to the Sydney-based property investment and asset management company, Propertylink.

The markets are a huge infrastructure project led by the Victorian government involving the relocation of the fruit, vegetable and flower markets from Footscray to Epping in Melbourne’s North.

Initial facilities will be open in 2015, with the 15.6-hectare site to be fully developed over the next decade.

The purchase reflected an initial passing yield of 9.6%.

It involves five warehouses over 76,000 square metres with 41 tenants so far, with leases ranging from five to 10 years. 

The Melbourne Markets have been located at Footscray since 1969 and the relocation to Epping, 20 kilometres north of the CBD, is hoped to provide wholesalers and retailers with improved transport access.

It will almost triple the available warehouse space.