INVESTOR TAKES TOLL ON ALTONA NORTH

A new industrial office and warehouse recently developed by Toll Holdings in Altona North, Victoria, has been sold to a private Melbourne investor on a yield of 8%. The property at 53–61 Horsburgh Drive, Altona North, comprises a purpose built office and warehouse of 18,100 sqm with 4264 sqm of awnings, with a substantial component of the improvements comprising of 30,000 sqm of medium to heavy duty hardstand. The property is currently under construction and is being built to the specific requirements of NQX Freight Systems, a wholly owned subsidiary of Toll Holdings, which will lease back the facility for 12 years from settlement of the $22 million sale. Toll Property Group previously purchased the 50 hectare, former DOW Chemicals site to develop a new industrial estate primarily to house many of its logistics business units. Vinci Carbone Property director, Joseph Carbone, who managed the sale, described the result as a testament to the strength of the private investor market and the lack of quality industrial investment stock currently available for sale. “We are seeing private high net worth investors are prepared to step up for premium quality property assets,” said Mr Carbone. “Obviously the 12 year lease covenant to Toll together with significant depreciation benefits were major factors in determining the suitability of this asset.” Toll director of property, Michael Fox, said that Toll’s first purchase in Altona was the former BP Oil Refinery 10 years ago and added that Toll has successfully developed and on-sold 8 buildings in the first estate on long leaseback arrangements. “It has been a while since we have seen a result like 8% for an industrial property over $20 million,” said Mr Fox. “We have seen some smart private money start to come into the market of recent months.” “I hope this result helps those trusts and institutions that are being told that the market is at 8.5% to 9.5% and beyond - it’s not!”