The home of Woolworths’ Mulgrave distribution centre and Victorian head office has been listed for sale – unlocking one of the largest infill sites to ever be offered to the market in Melbourne’s south east.
The supermarket giant confirmed to Inside Retail that the sale will have no impact on its operations or network operations facilitated through the site, as it has the benefit of long term lease tenure at the site, which is owned by Growthpoint, a listed South African based real estate investment trust.
The circa $100 million offering includes a 68,144sqm office and distribution centre, which was originally purpose built for its ASX listed tenant, Woolworths. The property offers a WALE of 3.8 years and annual income of approximately $4.7 million.
CBRE, in conjunction with Dawkins Occhiuto, have been appointed to market the 522-550 Wellington Road property, which comprises a 19 hectare infill landholding in the tightly held and densely populated suburb of Mulgrave. CBRE’s Chris O’Brien said the property’s scale and prominent position would be key selling factors.
“This is one of the biggest sites in Melbourne’s south east to be offered for sale, offering both an attractive opportunity to capitalise on its current investment profile with an A grade ASX-listed tenant or potentially further develop it for an alternative use in the medium to long term,” O’Brien said.
“The opportunity to secure such a substantial landholding in this tightly held, and established inner south east location is anticipated to attract interest from long term developers that will look to capitalise on its underlying land value.”
The property, which also includes surplus expansion land of circa 38,000sqm, offers excellent access to major thoroughfares, including Monash Freeway, Eastlink and Princes Highway.
Andrew Dawkins of Dawkins Occhiuto said the strong tenancy profile also presented an attractive investment that would appeal to a diverse buyer group.
“The facility forms a key part of Woolworths’ logistics supply chain, operating as its 24/7 distribution centre servicing all Victorian stores,” Dawkins said.
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