Ascot Capital has bought a distribution centre near Albury–Wodonga in Victoria through a sale and leaseback deal with Wine Depot for $10.6 million.
Located at 10 Albertson Road in Barnawartha North, the industrial property comprised 7,252 sqm of lettable area on a 40,200 sqm site.
The modern property had the option of increasing the gross lettable area to 18,022 sqm through an expansion of the existing facility and the construction of an additional adjoining building.
The sale featured a 12-year triple net lease with Wine Depot, in addition to planning approval for the construction of an additional warehouse and the extension of the existing facility.
“We are delighted to be forming a long-term partnership with Wine Depot,” Ascot Capital Director Greg King said.
“This fits right into Ascot’s deal envelope, with long tenure of income and the opportunity to scale-up with further development.”
Colliers’ Sean Thomson, Gavin Bishop and Nick Saunders sold the property via an expressions of interest campaign.
“Macro-economic drivers for the industrial and logistics market such as e-commerce and infrastructure investment will further benefit the Albury-Wodonga precinct due to its excellent nationwide connectivity and we expect to continue to see further yield compression within the precinct,” Sean Thomson, Director, Industrial Capital Markets Australia, at Colliers said.
“There is an increasing occupier demand for regional distribution centres due to the increased efficiency and sophistication of automated warehousing reducing order fulfilment times and inventory loss.
“This asset is critical for Wine Depot’s operational supply chain as 85% of Australia’s population can be reached by an overnight transport shift due to the immediate proximity of Australia’s premium freight corridor, the Hume Highway.”
The deal comes after a Charter Hall fund bought an SPC industrial property in Shepparton, Victoria for $66 million through a sale and leaseback deal this month.
Other industrial property deals in Victoria include the Logos-led acquisition of two industrial development sites in Sydney and Melbourne, offering an estimated end value of $640 million.
Centuria Industrial REIT acquired a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane worth a combined end-value of $132.4 million last month, following its purchase of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million last November.
Earlier this week, Colliers Managing Director for Industrial Gavin Bishop said there was an estimated $50 billion worth of capital seeking investments in Australia’s industrial property market.