Private capital investors are making their presence felt in the Logistics & Industrial (L&I) investment market, accounting for 53% of transaction value so far in 2024, a significant rise from the long-term average of 15%. This follows more than $1 billion in national acquisitions by private capital in 2023, signaling a major shift in market dynamics.
Traditionally dominated by institutional groups, the demand for larger L&I assets is now increasingly driven by private investors, including domestic and offshore family offices. Globally, private capital has accounted for 30% of buyers by value in transactions exceeding $30 million over the past three years, a trend that reflects its growing potential within the Australian market.
Amidst this rise, a generational wealth opportunity has emerged with the 100% freehold interest sale of 9-15 Foundation Road, Truganina, VIC. This prime asset, offering secure income and a strong growth outlook, is centrally located in Melbourne’s leading warehousing and distribution precinct and one of Australia’s fastest growing population corridors.
The property, being marketed by Cushman & Wakefield’s Chris Jones and Charlie Holmes, is expected to attract significant interest. With a guide price just above land value, estimated at $27 million, the sale represents exceptional value relative to the property’s replacement cost which is in excess of $45 million.
Located within the Dexus Industrial Estate, just off Boundary Road, the asset features 6,611sqm of modern improvements on a 3.15-hectare landholding. The facility has low site coverage, allowing for the potential expansion of a further 10,900sqm Gross Lettable Area (GLA), which could generate significant future income growth and value uplift. As an irreplaceable, prime-quality asset in a core location, it offers long-term potential for both income and capital appreciation.
The property is securely leased to Loscam, Asia Pacific’s market-leading pallet pooling business, with 9.6 years remaining on the lease as at December 2024. The secure income stream and strong forecast rental profile presents a rare opportunity for investors to capitalise on future market growth.
Chris Jones of Cushman & Wakefield said “The demand for prime assets like this, especially in key population growth corridors such as Melbourne’s West, is incredibly strong. The property’s combination of secure long-term income, with 4.0% average annual increases, and genuine expansion capability makes it a standout opportunity in today’s market.”
Charlie Holmes of Cushman & Wakefield said “The current income of $1,270,159 per annum, equating to $40 per square metre of site area, is considered significantly below market levels. This affords an incoming purchaser substantial long-term income upside and capital growth potential.”
