Melbourne’s car king Reg Hunt has cashed in on Melbourne’s booming industrial property market by selling a portfolio of properties to Stockland for $120 million.
Hunt was once the largest car dealer in Australia and the sale is only a small slice of the family’s property portfolio.
The family continues to hold a large portfolio of properties.
Stockland has bought six industrial and office properties in Melbourne, three are new properties in the distribution hub of Somerton, north of Melbourne. The properties are located at Craigieburn bypass, providing access to the Hume Highway.
The other three properties are located in Melbourne’s south eastern suburbs with one located on Centre Road, Clayton.
The portfolio includes freestanding industrial warehouses and one industrial unit estate, with a total lettable area of 141,171 sqm.
The portfolio was purchased on a fully leased initial yield of 7.5% and has a weighted average lease term of 4.3 years.
One of the properties is currently under redevelopment and is already 50% leased, and two new buildings under construction and due for completion in early 2007. The Hunt family is responsible for the leasing and settlement will occur following practical completion.
Stockland’s chief executive of commercial and industrial division Steve Mann said the acquisitions consolidate Stockland’s position as a significant investor in the Melbourne industrial market.
“Off-market acquisitions of this size are rarely offered, and we were able to leverage our capabilities and relationships to complete this transaction,” he added.
Following the acquisition, Stockland will have eight industrial assets spread around Melbourne with a combined value of $216 million, including two properties at Brooklyn Estate and the Altona Distribution Centre.
The purchase will also increase the value of Stockland’s national industrial and office park portfolio to $1 billion.
By Nelson Yap
