A property near Melbourne Airport, Victoria, has been sold by MAB Corporation to the Peet Income Property Fund (PIPF), for $9.1 million on a 7.2% yield. PIPF is an open-ended fund managed by one of Australia’s leading property groups, Peet Limited.
The property, 103 Western Avenue, Tullamarine, is under construction on the penultimate site in MAB Corporation’s ground breaking “Global Business Park”. MAB Corporation is a well-known and respected Melbourne developer, owning a number of business parks and Docklands’ NewQuay.
Global Business Park is close to Melbourne Airport, 20 minutes from Melbourne’s CBD and home to newspaper publisher Fairfax’s $220 million Victorian print centre for The Age and many logistics companies that service the airport. This off-the-plan sale to PIPF leaves a two-hectare site as the final opportunity to buy into this quality business park.
Peet Limited’s Managing Director Warwick Hemsley said that PIPF’s latest acquisition was a strategic move that expanded the number of properties held by the Fund to 10, spread across Queensland, Western Australia, the Northern Territory and now Victoria.
“As the fund’s manager, Peet is always looking for high-quality commercial and industrial buildings that are attractively designed and well located to attract long leases,” he said. “MAB Corporation’s Global Business Park offered an ideal opportunity for PIPF to expand into Victoria, purchasing a new property that is pre-leased to a global tenant.”
Construction of a 6,100m2 office/warehouse complex has commenced on the 1.65 hectare site. The property has been pre-let on a five-year lease, plus five year option to EGL Eagle Global Logistics – an international company whose parent company is listed on the NASDAQ Stock Market. The building will become the new Victorian head office and international freight forwarding facility for EGL. Settlement is expected on completion of the new building in late June 2007.
MAB Corporation’s business parks general manager David Hall said the property had been an excellent fit for EGL with its exposure to the Tullamarine Freeway and close proximity to Melbourne Airport.
“Global Business Park continues to attract leading businesses seeking high visibility and close proximity to Melbourne Airport,” Mr Hall said.
“The lure of airport and sought-after services including shopping centres, restaurants and motels has attracted companies such as international freight forwarders Kuehne & Nagel and dairy group De Laval,” he said.
Mr Hall said Global Business Park’s evolution as a freight-forwarding hub was in keeping with MAB Corporation’s vision for the site.
“We fully expect the remaining two hectares will be developed for other airport and freight-related industries. Our focus is firmly fixed on this remaining land at Global as well as the development of nearby Translink Business Park in Keilor Park, University Hill at Bundoora and the recently acquired former Goodyear site in Thomastown.
The deal was brokered by Colliers International’s Tony Iuliano.