Myer’s distribution centre in Melbourne’s south-west has been snapped up by Lendlease for $38.15 million.
Lendlease’s unlisted Australian Prime Property Fund Industrial investment platform acquired the site with an initial yield of about 6 per cent.
Located at 121-139 Dohertys Road in Altona North, the centre occupies a 30,400sq m space on 11.59 hectares of land, and is fully leased to Myer with more than six years left on the lease.
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"This is a significant industrial asset in a prime location near the heart of Melbourne with excellent transport links," Lendlease Investment Management managing director Josh McHutchison said.
“This acquisition aligns with APPF Industrial’s strategy of acquiring high-quality, modern logistics facilities with strong tenant covenants, while broadening opportunities for development.”
Lendlease’s Australian Prime Property Fund Industrial fund was set up in 1996 as a core wholesale unlisted property trust for institutional investors. The Altona North purchase brings the number of assets in the fund to 30.
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Altona North was described by CBRE in its listing as a key logistics precinct in Melbourne's west located 10km from the Port of Melbourne.