Refrigerating warehouse giant
Oxford Cold Storage is set to sell and leaseback its 24 hectare estate in Laverton North, Victoria.
The largest refrigerated warehouse company in the Asia Pacific is making an unprecedented move in selling one of Australia’s industrial assets with a 20 year triple net lease, which is estimated to to generate $250 million in interest.
CBRE Regional Director, Industrial and Logistical Services Matt Haddon says it is the “opportunity to acquire the largest single cold storage estate in the Southern Hemisphere and one of the most substantial on a global scale.”
Located in a prime position at the corner of Doherty’s and Hume Roads, the family owned business is currently the leading provider of third party temperature controlled warehousing.
The site for sale currently provides centralised national services to more than 80 local, national and international clients in the food industry and boasts 120 000 square metres of buildings with capacity for further expansion.
CBRE Real Estate’s Chris O’Brien has stated that it was the optimal time to be selling the faculty, given the current strength of demand for industrial assets. “Australia is continuing to attract unprecedented levels of interest from both local and offshore investors looking to inject substantial capital into the industrial sector,” Mr O'Brien said.
Mr Haddon also commented on the rare opportunity for investors to get their hands on substantial infrastructure-type assets, stating that “investors have become particularly attracted to the Refrigerated Logistics sector, as replication of competing product is limited…traditional logistics assets have always appealed to local investors due to their long lease profiles, fixed income growth and corporate tenant profiles. However, reports of strong returns in the Australian industrial market have attracted a growing number of offshore investors, which has boosted activity and added depth and confidence to the market,” Mr Haddon told
OCS Operations and Marketing Director Paul Fleiszig also spoke with Australasian Transport News stating that some profit made from the sale of Oxford Cold Storage would be used to further pursue opportunities. “We’ve got a number of opportunities and monetising the asset will allow us to look quite aggressively at those opportunities,” Mr Fleiszig said.
The company has been continually developed in stages by leading builder
Vaughan Constructions to become a state of the art facility and is now comprised of 14 temperature controlled warehouses, two conventional warehouses, various support buildings and extensive concrete paved driveways and parking areas.
The facility currently accommodates approximately 800 truck movements per day and employs over 400 staff.