Queensland property group Trinity Consolidated has bought the Mulgrave Business Park in Melbourne’s south-eastern suburbs for $33.35 million as part of its increasing presence in the Victoria commercial property market.
Trinity now has in excess of $100 million worth of property assets in Victoria.
The high profile business park at 362-382 Wellington Road in Mulgrave will be jointly owned by the listed Trinity Consolidated Trust and the unlisted Trinity Property Trust on a 50-50 basis.
Mulgrave Business Park is being sold by Evolve Development — the sale remains unconditional.
The property incorporates 15 buildings on a 4.8 hectare site, providing potential for further development within the medium term, according to Trinity chief executive, Ben McCarthy.
"The complex provides a healthy immediate return as well as considerable expansion opportunities at a time when the Mulgrave region is experiencing significant commercial growth," McCarthy said.
"Currently the business park is around 95% leased with tenants including Repco, HOA Australia and Fuji Film.
"The business park met our fundamental criteria of bricks and mortar value and an underrated tenancy profile with a strong lease expiry profile of 3.48 years and one of the anchor tenants Repco recently committed to a new five year term," McCarthy added.
The gross letable area of the existing buildings totals 18,704 sqm, providing a mix of commercial and industrial premises as well as a distribution centre.
CB Richard Ellis agent Andrew Dawkins introduced the buyer.
"We see significant upside in Melbourne and Victoria generally and have already made a series of significant investments through our unlisted property trust."
The Trinity Property Trust already owns commercial properties 460 Bourke Street in Melbourne’s CBD, the Foxtel National Customer Service Centre in Moonee Ponds and 1183 Toorak Road in Camberwell, as well as industrial warehouses in Broadmeadows and Noble Park.
Just last week, as previously reported by Australian Property Journal, Trinity Consolidated declared it was attaining full ownership of private Queensland developer Consolidated Properties for $25.35 million in a scrip for scrip merger, subject to valuation, an independent expert report and security holder approval.
Trinity remained unchanged at $1.28 yesterday on the trade of just under 42,000 shares.
By Ted McDonnell
