Melbourne group buys pair of Coles, Woolies distribution centres

The deals for the two facilities put on display the stiff demand for centres with strong covenants with the complexes leased to Coles and Woolworths respectively.

The Goulburn centre was built for Coles that will still occupy the facility until February, 2022, plus options.

The building spans 42,500sqm and sits on a site of 16.25ha allowing for further expansion. The modern high clearance facility includes 3400sqm of office and amenities and is accessed via 60 roller shutter doors.

The centre in Warwick was built for Woolworths to house the distribution operations under the Big W brand. Big W has a lease over the asset until October 2023 with further options.

The warehouse has a lettable area of 65,300sqm and is on a site of 23.25ha with room for expansion. It includes a facility with offices of 430sqm and 103 roller shutter doors.

Selling agents Graham Hemingway and Stephen Bolton from Gill Property said the portfolio was generating a net income of around $16.05 million a year with the yield reflecting the passing rental levels and the short-term nature of the current lease terms.

Pelligra has assembled a portfolio of significant industrial assets and is repositioning via active asset management.

Recent projects include the 130ha former GMH Plant in Adelaide, the 66ha former Ford site in Campbellfield and the 44ha former Ford site in Geelong.

Pelligra chairman Ross Pelligra says the company is working with the sitting tenants and the local governments and businesses to maintain and grow employment in the areas.

Gill Property’s Hemingway says the off-market sale process generated a strong level of interest in the assets with eight expressions of interest received from local and offshore institutions.

This article originally appeared on www.theaustralian.com.au/property.