NEWS

High demand, limited supply fuels competition for industrial assets

A strong finish to 2016 sees Colliers International’s Melbourne North West office ready to sate intensifying buyer appetite in the new year

Three substantial deals in Melbourne’s west capped off a strong year for Colliers International’s industrial team, a tell-tale sign of the growing buyer appetite expected in 2017.

Sales in Derrimut, Laverton North and Hoppers Crossing were the icing on the cake for a strong 2016 in the Victorian business’ Melbourne West (Ravenhall) office.

Industrial executives Ashley McIntyre and Charlie Woodley negotiated transactions for 128 Paramount Boulevard, Derrimut, 5 Everaise Court, Laverton North, and 3/12 Hammer Court, Hoppers Crossing, totalling $3.125million.

Ms McIntyre said high demand paired with limited supply was fuelling competition for industrial portfolio assets in the western suburbs.

“These sales highlight the current trend of high demand corresponding to low days on market,” she said.

“With serviced industrial land in the west quickly running out, enquiry levels throughout all three campaigns remained consistent and resulted in the sites achieving the desired outcomes for our vendors.”

The 9793sqm site at 128 Paramount Boulevard, Derrimut, was knocked down under the hammer for $1.37million in December.

Mr Woodley said the property’s irregular shape did not dissuade prospective buyers.

“Land supply is limited at the moment and we are still receiving enquiries from people hoping that it passed in,” he said.

“The Paramount Estate is known for being surrounded by excellent amenity and a sale at $140 per square metre is a fantastic result for our vendor.”

Arva Freight is the new owner of the 520sqm office-warehouse with adjacent 1050sqm hardstand at 5 Everaise Court, Laverton North.

Ms McIntyre said the unusual offering sold for $1.36million late last year.

“We managed strong interest from local logistics companies wanting to take advantage of the extra space and close proximity to the Princes Freeway,” she said.

“We were only on the market for about 50 days and ended up receiving three offers for our vendor to select from. There’s definitely high demand in the west for smaller warehouses with access to decent hardstands.”

Hoppers Crossing continues to be a quiet achiever in the Melbourne industrial sector, with the sale of 3/12 Hammer Court finalised after just 60 days on the market.

“Small investment properties in Hoppers Crossing are popular with first-time industrial investors wanting to expand their portfolio,” Mr Woodley said.

“The site was leased for $29,240.04 per annum, which resulted in a 7.4 per cent yield.”

Colliers International industrial commercial real estate property Derrimut Melbourne west

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