Dexus has sold the Axxess Corporate Park in Mount Waverley in Melbourne’s southeast to Gateway Capital and Cadillac Fairview for $315 million, marking the single largest industrial deal nationally over the past year.
Dexus said the sale realised proceeds of $306.2 million, reflecting a 7.4% premium to its end-2022 independent valuation.
Axxess Corporate Park comprised 84,926 sqm of lettable area across multiple asset classes on a 19.6 hectares site.
The property was one of the largest single land holdings in Melbourne’s southeast and represented the largest business park transaction in Victorian history.
Cushman & Wakefield’s Capital Markets Industrial and Logistics team brokered the deal.
C&W said it was the single largest investment transaction in the industrial and logistics sector nationally over the past 12 months, with the campaign attracting more than a dozen participants including global capital.
C&W has identified $55 billion in capital seeking to be deployed into the sector as the continued demand and rental growth continues to excel and is forecasted for many more years to come.
Dexus recently sold its office property at 44 Market Street in Sydney, securing combined sale proceeds of about $700 million, representing an approximate average 8% discount to their end-2022 independent valuations.
The transaction brings Dexus’ total divestments announced during FY23 to date to approximately $1.5 billion.
Australia’s industrial market has experienced record rent surges, with rents growing by up to 24% year-on-year while vacancy remained at a historic low.
New Savills research for Q1 2023 found that a two-tiered land market was also emerging, as distinctions became apparent at a national and precinct level, with higher rates causing prime yields to rise nationally.
After a solid 18 months of unprecedented occupier demand, Savills found that east coast markets were witnessing a growth rate of more than seven times their 15-year average.
The Axxess Corporate Park deal is expected to close in early July 2023.