122 DOUGHARTY ROAd Heidelberg West
for sale by Expressions of Interest closing on Thursday 9th December at 2PM
122 DOUGHARTY ROAd Heidelberg West
CONTENTS 04
INTRODUCTION
06
EXECUTIVE SUMMARY
10
LOCATION
12
PROPERTY PARTICULARS
16
TENANCY DETAILS
17
FLOOR PLAN
18
NORTH EAST LINK PROGRAM
20
MARKET ACTIVITY
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SALE METHOD
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INTRODUCTION Aston Commercial are excited to offer 122 Dougharty Road, Heidelberg West For Sale by Expressions of Interest closing on Thursday 9th December at 2pm. This is an outstanding and rare Industrial offering. Located in the highly sought Heidelberg industrial precinct an area that will have the benefit of the soon to be completed Northeast road project. A project that is a game changer for the area. It has absorbed a large tract of industrial land in nearby Bundoora decreasing supply of industrial assets and it will also slash travel times and traffic congestion. Decreased supply and increased accessibility give this asset a big tick. Currently operating as a cabinet manufacturing business, the property is under a short-term lease that will provide vacant possession in June 2022. This providing a unique opportunity for owner occupiers to establish themselves in this unique location. The building provides good flexibility and offering of high and low clearance warehousing, office and showroom space and multiple roller door access. Aston Commercial highly recommend this property for your serious consideration.
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rare Industrial offering.
EXECUTIVE SUMMARY
122 DOUGHARTY ROAd Heidelberg West
Located 10km’s North-East of the CBD on the corner of Dougharty & Mologa Roads.
DESCRIPTION
L e a s e D E TA I L S
High clearance manufacturing facility with two levels of office along and loading bay facilities
There is a current lease returning $196,045 net pa. The lease ends on 19th September 2022
LAND & BUILDING AREA
ZONING
Land: 3,591 sqm* Building: 3,170 sqm*
IN3Z - Industrial 3 Zone
METHOD OF SALE
TERMS OF SALE
For Sale by Expressions of Interest closing Thursday 9th December at 2pm
10% deposit with the balance payable in 60-120 days *approx.
EXCLUSIVE SELLING AGENTS
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Liam Rafferty
Jeremy Gruzewski
Senior Sales Executive 0421 886 655 liam@astoncommercial.com.au
Director of Agency 0422 211 021 jeremy@astoncommercial.com.au
HWBP plays a significant role in the economic and business development within the City of Banyule, employing more than 4,500 people and accounting for 10% of jobs in Banyule. The Heidelberg West Business Park is located in the Banyule City Council, the boundaries of the estate include Sheehan Road to the west, Dougharty Road to the south, Bamfield Road to the east and part of Orr Street, part of Northern Road and Crissane Road to the north.
Prominant Corner in the Heidelberg West Business Park.
LOCATION The Heidelberg West Business Park has long been a hub for industrial and commercial businesses in Banyule. Positioned within La Trobe’s National Employment and Innovation Cluster, the estate has been evolving to accommodate a more diverse range of industry and business. Home now to over 600 businesses with manufacturing, construction, automotive and wholesaling representing the majority of business, HWBP has one of the highest concentrations of jobs in Melbourne’s northeast and has the potential to become an even greater magnet for investment, jobs services and business. Businesses are becoming increasingly aware of changes in consumer expectations, and are consequently adapting to offer locally designed, manufactured and sourced products. There is a renewed focus on Australian-made and ethically-sourced, with many in the Heidelberg West Business Park focusing on sustainability and a more socially-conscious approach. Some nearby businesses and infrastructure include:
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La Trobe University
Northland Shopping Centre
Melbourne City Football Academy
North East Link Extension
Plenty Road Bypass
PROPERTY PARTICULARS
Existing Improvements
TITLE PARTICULARS
This building is perfectly suited to owner occupiers allowing businesses to consolidate their manufacturing and distribution along with their backend office into the one building making it the perfect HQ.
Volume: 10225 Folio: 365 Lot 2 on Plan of Subdivision 341781P
The prominent corner location provides for maximum exposure and accessibility for truck movements. There is ample office and showroom space in good clean condition, a mixture of low and high clearance warehousing plus mezzanine space. Flexible enough for a multitude of business operations.
• Open plan warehouse of 2,249 sqm* • 691 sqm* of office/ showroom space • 230 sqm* mezzanine storage • Staff tearoom • Male / Female amenities over two levels • Multiple Roller doors with up to 4.5m height span • Rear loading bay with canopy • 3 phase power supply • Solar panelling • On-site staff parking *approx.
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ZONING Under the Banyule City Council Planning Scheme the property is zoned Industrial 3 – IN3Z.
LAND DIMENSIONS AND AREA Dougharty Road Frontage 35.8 metres* Mologa Road Frontage
89.8 metres*
Northern Boundary
44.3 metres*
Western Boundary
91.4 metres*
Total Land Area:
3,591 square metres*
*approx.
TENANCY DETAILS
The property is being offered with a short term tenancy in place summarised below. Importantly this lease allows the property to be sold as a going concern avoiding a GST payment in addition to the purchase price.
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Trading Name
PD Cabinets Pty Ltd
Current Rent
$196,045.45 pa + GST
Lease Term
Five (5) Years
Commencement Date
20th September 2017
Expiry Date
19th September 2022
Options
The tenant has given notice they will not be taking up their option
Outgoings
Paid by tenant
Security Bond
Equal to 3 months rent + GST
FLOOR PLAN 122 DOUGHARTY ROAd Heidelberg West
Warehouse
2249 sqm*
Office
355 sqm*
Showroom
336 sqm*
Mezzanine
230 sqm*
Total
3,170 sqm*
*approx.
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NORTH EAST LINK PROGRAM North East Link is the biggest ever investment in Melbourne’s northeast – changing the way people move around Melbourne. North East Link is part of more than $18 billion being invested into major road and rail projects in Melbourne’s north and north east. Victoria’s longest road tunnels will fix the missing link in our city’s freeway network, take 15,000 trucks off local roads a day and slash travel times by up to 35 minutes.
For more information visit: bigbuild.vic.gov.au/__data/assets/pdf_ file/0005/598442/NEL-Project-MapOctober-2021.pdf
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122 DOUGHARTY ROAd Heidelberg West
MARKET ACTIVITY
Q3 2021
Melbourne Industrial MaRKET Across Melbourne’s industrial market, more than $4.3 billion was transacted, already exceeding the previous record annul level of $2.5 billion; Investor demand for industrial assets has been underpinned with the pandemic driving faster take up of e-commerce and online retail penetration, has driven yields to historic lows; Vacant industrial space across the Melbourne market decreased through the 12 months to September 2021, as tenant demand outpaced supply, falling to all-time lows of sub-2%.
Yields have continued to compress as investors seek to increase their exposure to the sector underpinned by the ongoing growth of e-commerce. Average prime yields have compressed by 40 basis points over the 12 months to September 2021 with portfolio sales setting new benchmarks for the sector. While funding costs remain low and rental growth becomes more pronounced, Urban Property Australia anticipates that yields will compress further as investors aggressively seek investment opportunities.
Tenant Demand The growing penetration of e-commerce has resulted in a significant lift in tenant demand through 2021.
I n d u s t r i a l M a r k e t S u m m a ry Boosted by a number of large portfolio sales, more than $4.3 billion has been transacted in the Melbourne industrial market in 2021 to date, already exceeding the previous record annul level of $2.5 billion. With the share of online retail reaching all-time highs and increasing demand larger facilities to accommodate automated supply chain requirements the Melbourne industrial vacancy rates has fallen below 2%.
Sales Volume / Yields Transactional activity in the Melbourne industrial market accelerated though 2021 with strong demand from all investor types. Boosted by a number of large portfolio sales, Urban Property recorded more than $4.3 billion was transacted in the sector in 2021 to date. Indeed, the level of sales has already exceeded the previous record annul level of $2.5 billion achieved in 2020. In 2021 to date, transactional activity in the Melbourne industrial market was focused on the key precincts of the West and South East which collectively accounted for 82% of total sales. Influenced by the major portfolio transactions, offshore purchasers have accounted for 61% of the volume of industrial sales in 2021 to date, their highest share of industrial property sales in Melbourne in 10 years.
Retailers and wholesale trade boosted by the lift in non-discretionary spending have led tenant demand followed by logistics occupiers with leasing activity above the long-term average. The focus of the tenant demand has been on the Western and South Eastern regions which collectively accounted for 65% of gross take-up according to Urban Property Australia research.
Va c a n c y / R e n t s Vacant industrial space across the Melbourne market decreased through the 12 months to September 2021, as the growth of e-commerce has driven tenant demand outpacing new supply. Urban Property Australia research estimates that Melbourne industrial vacancy rate currently stands at 1.5% as at October 2021 with the South East vacancy rate below 1%. Rental growth gained momentum across all precincts in the Melbourne industrial market in the year to September 2021, coupled with a decrease in incentives levels from landlords. The underlying strength in the retail trade and logistics demand is contributing to a rise in leasing activity with strong demand for larger facilities to accommodate automated supply chain requirements. Urban Property Australia expects that this unsatisfied demand is likely to see rental growth rates improve over the next 12 months particularly in the South East which is expected to outperform given the lack of leasing options. Source: Urban Property Australia
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SALE METHOD
122 DOUGHARTY ROAd Heidelberg West
METHOD OF SALE
TERMS OF SALE
For Sale by Expressions of Interest closing Thursday 9th December at 2pm
10% deposit with the balance payable in 60-120 days
INSPECTIONS
CONTRACT OF SALE & V E N D O R S S TAT E M E N T
Strictly by private appointment with the exclusive selling agents.
Available upon request.
EXCLUSIVE SELLING AGENTS
22
Liam Rafferty
Jeremy Gruzewski
Senior Sales Executive 0421 886 655 liam@astoncommercial.com.au
Director of Agency 0422 211 021 jeremy@astoncommercial.com.au
DISCLAIMER “Materials” refers to any representations, statements, documents, data, statistics, measurements, estimates, figures, calculations, projections, approximates or otherwise stated by Aston Commercial Pty Ltd whether verbally or in writing. The Materials have been collated to assist potential purchasers for advertising and general information only to assist potential purchasers to decide whether to proceed with further investigation in relation to the property or the land. The Materials provided by Aston Commercial does not constitute any offer or contract of sale and is not to be relied upon prior to signing any relevant contract. Any dimensions or measurements of the property or the land (internal and external) are approximates only and should not be relied upon before signing any contract. The potential purchaser must conduct investigations to satisfy themselves that any Materials provided are accurate. Aston Commercial excludes unequivocally all inferred or implied terms, conditions and warranties arising out of the Materials and excludes all liability for loss and damage arising therefrom. *Approximate
