DB RREEF has increased its industrial holdings with the purchase of a 65.4 hectare site at Laverton North in Melbourne’s west for $32 million.
Located at 440 Doherty’s Road in Laverton North, the site is adjacent to DRT’s existing holding, the DB RREEF Industrial Estate.
DB RREEF Funds Management chief executive Victor Hood Antink said the site provides a strategic extension to this development, in which several recent and pending precommitments having utilised a number of major lots.
“This purchase complements the objectives of DRT for its domestic portfolio, with an increased focus on delivering value to unitholders through an enhanced development pipeline,” he added.
DB RREEF’s industrial portfolio currently has over 68,000 sqm of development activity under way with an estimated cost of $136.1 million and a forecast yield on completion of approximately 8%.
At the 92.50 hectare DB RREEF Industrial Estate in Laverton, the trust has secure pre-commitment from Wrightson Seeds Australia and construction has commenced on a 7,850 sqm warehouse and distribution facility costing approximately $3.0 million, which is due for completion in the last quarter of 2006.
The trust has also secured pre-commitment from Coles Myer for a $96 million, 43,705 sqm chilled distribution centre, which is currently underway an on schedule for completion in the first half of 2007.
In the US, DRT is developing approximately 220,000sqft of suburban office space which is due for completion in the first half of 2008 and is forecast to cost approximately $US52 million.
In the commercial sector, DRT has completed refurbishments on 44,400 sqm and a 20,370 sqm development is currently underway and a further 79,000 sqm are in the pipeline.
In the retail sector, a development adding approximately 40,000 sqm of incremental area to Plenty Valley is due to commence and complete in early 2008. New majors tenants will include Target, Kmart, Safeway and Aldi, in addition to over 80 specialty retailers.
Also planned to commence this financial year is a 25,000 sqm expansion of Northlakes to house Woolworths, Big W, and over 70 specialty stores.
By Adam Parsons
