Sydney-based property investment and asset management company,
Propertylink, has bought the warehousing facilities at the new Melbourne Markets for $77.4 million.
The relocation of the wholesale fruit, vegetable and flower markets from Footscray to Epping in Melbourne’s north is a significant infrastructure project initiated by the Victorian Government.
Australian construction company,
Hansen Yunken has been contracted to deliver the new facilities in the second quarter of 2015.
The Government has already committed heavily to the project and further capital is expected to be invested in the facilities as the 15.6 hectare site is fully developed during the next decade.
Propertylink Managing Director Stephen Day said, “the markets have been relocated to a prime industrial region of Melbourne and the facilities incorporate the core trading facility, warehousing, distribution centres and value-added businesses".
The purchase reflected an initial passing yield of 9.6% and involves five warehouses over 76,000 square metres with 41 tenants so far, with leases ranging from five to 10 years.
Propertylink’s role will be to assist in the funding and ultimate ownership of the development, working alongside Hansen Yuncken.
The Melbourne Markets have been located at Footscray since 1969 and the relocation to Epping, 20 kilometres north of the CBD, will provide state-of-the-art facilities for retailers and purpose-built warehouse facilities with appropriate insulation, sunken load bays and extended hardstand areas, capable of handling the quantity of vehicles utilising the markets daily.
The market is an important part of the state’s economic infrastructure, and the substantial investment in the new market will enable the approximately $2 - $3.5 billion Victorian fresh produce industry to secure a greater share of the estimated $15.4 billion national industry and further develop export markets.
The existing market precinct will be part of the proposed port and rail development in Footscray over the next 20 years.