Savills : Owner-Occupier Pays $7.5m for Refrigeration Facility

An owner-occupier is believed to have paid circa $7.5 million for a substantial cold storage facility with potential redevelopment and land banking upside at Mulgrave in Melbourne's south-east.

According to marketing agents, Savills directors Kosta Filinisand Lynton Williams, the Expressions of Interest campaign drew a high level of enquiry from specialist owner-occupiers and investors looking to acquire a rare property.

'This was one of those properties which has a select market following and one which is often highly sought-after given the specialised nature of the improvements.

'The purchaser had been in the market for a similar facility and was swayed by the exceptional access to Melbourne's freeway network.

'It was an astute purchase given the facility's not inexpensive replacement value,' Mr Filinis said.

The 769-781 Springvale Road property comprises a 5,500 square metre building, including freezer, chiller and cool rooms, on a 15,900 square metre site.

It is located within minutes of the M1 Freeway on a highly regarded industrial estate which is home to BMW's Headquarters, Peters Ice Cream, and Monash University.

Mr Williams said the site, zoned Special Use 6 under the City of Monash, also offered potential for redevelopment given its prime location.

He said the market for industrial properties was quite strong due to a number of factors including low interest rates, the lure of relatively good industrial yields and the volatility of share market investments.

'What has also been a driver in the sub-$10 million sector is the rise of the self-managed super funds which have increasingly been drawn to industrial investments,' Mr Williams said.

The property was sold with vacant possession by vendor, national distributor of dry, dairy, frozen, smallgoods and accessory products, Superior Food Services.