globally recognised covenants - · pdf filecolliers international in conjunction with cbre...

G L O B A L L Y R E C O G N I S E DC O V E N A N T S

- L O G I S T I C S C A P I T A L O F A U S T R A L I A

F O R S A L E V I A I N T E R N AT I O N A L E X P R E S S I O N S O F I N T E R E S T3pm AEST Wednesday 15 June 2016

GLOBALLY RECOGNISED COVENANTS - LOGISTICS CAPITAL OF AUSTRALIA I 3

The portfolio represents a sought after opportunity to acquire

four premium logistics assets all located in Victoria, Australia’s

logistics capital, at an attractive initial yield. The portfolio

incorporates a combined net income of $11,957,773 plus GST

(incorporating upcoming rental reviews in July 2016) and

provides a long term income stream with four highly regarded lease covenants, providing a weighted average lease expiry of 6.8 years as at 30 June 2016.

The portfolio will be sold via an International Expression of Interest campaign closing 3pm AEST Wednesday 15 June 2016.

Colliers International in conjunction with CBRE take pleasure in offering this high quality logistics portfolio to the market for sale.

I N T R O D U C T I O N

LODGEMENT OF OFFERS

All lodgement of offers to be sent to:

Tony IulianoNational Director, Industrial

Mobile: +61 412 992 830 [email protected]

Adrian Rowse Director, Industrial


Colliers InternationalLevel 30

367 Collins Street

Melbourne, VIC, 3000

Australia

Chris O’BrienRegional Director - Pacific Industrial & Logistics Capital Markets Mobile: +61 407 664 233 [email protected]

Matt Haddon Senior Managing Director Industrial & Logistics - Pacific


CBRELevel 34,

8 Exhibition Street


Australia

THE ASSETS:• 28 Bilston Drive,

Albury-Wodonga

• 101–103 William Angliss Drive, Laverton North

• 213–215 Robinsons Road, Ravenhall

• 365 Fitzgerald Road, Derrimut

GLOBALLY RECOGNISED TENANTS

• Woolworths

• Automotive Holdings Group

• Fuji Xerox

• Bridgestone

FOURProperties

Long Portfolio WALE (by income as at 30-Jun-16)

Portfolio Occupancy

CPI – 3.5%Strong Annual Rental Growth

$11,957,773 PER ANNUM

Total Income(incorporating near

term reviews)

FURTHER DEVELOPMENT

POTENTIAL

103,517M²Total GLA

6.8 YEARS

362,230M²Total Site Area

100%

4 | GLOBALLY RECOGNISED COVENANTS - LOGISTICS CAPITAL OF AUSTRALIA

2 1 3 - 2 1 5 R O B I N S O N S R O A D , R A V E N H A L L

3 6 5 F I T Z G E R A L D R O A D , D E R R I M U T

1 0 1 - 1 0 3 W I L L I A M A N G L I S S D R I V E , L A V E R T O N N O R T H

Properties

Port

Airports

Major Roads

A L B U R Y

T O S Y D N E Y

W O N D O N G A

2 8 B I L S T O N D R I V E , A L B U R Y - W O D O N G A

G L O B A L L Y R E C O G N I S E DC O V E N A N T S

- L O G I S T I C S C A P I T A L O F A U S T R A L I A


T E N A N C Y D E T A I L S A N D O V E R V I E W

PROPERTY TENANT GLA (m2) SITE AREA (m2) NET INCOME P.A. WALE* (YEARS BY INCOME) OCCUPANCY PAGE NO.

28 Bilston Drive, Albury-Wodonga Woolworths Limited 57,440 250,000$6,505,661

(as at 30 July 2016)5.1* 100% 8

101-103 William Angliss Drive, Laverton North Scott’s Refrigerated Freightways Pty Ltd 8,871 37,350 $1,894,641 12.7* 100% 10

213-215 Robinsons Road, Ravenhall Fuji Xerox Businessforce Pty Ltd 21,092 45,020$2,154,296

(as at 13 July 2016)9.0* 100% 12

365 Fitzgerald Road, Derrimut Bridgestone Australia Ltd 16,114 29,860$1,403,175 (as at 1 July 2016 – assuming 2% CPI increase)

3.7* 100% 14

Total 103,517 362,230 $11,957,773 6.8* 100%

TENANCY HIGHLIGHTS

• Portfolio comprises a range of premium grade, well recognised lease covenants including ASX listed and multi-national companies.

• Strong portfolio WALE of 6.8 years by income (as at 30 June 2016).

• Well staggered lease expiry profile with expiry dates ranging from 5 March 2020 to 23 March 2029.

• Leases provide for annual rental growth ranging from CPI to 3.5% p.a. providing a strong running yield position for the portfolio.

• 100% occupancy across all assets.

FUJI XEROX GROUP

• Fuji Xerox Australia is part of a world leading enterprise for business and document management services.

• Fuji Xerox Businessforce Pty Ltd is a wholly owned subsidiary of Fuji Xerox Document Management Solutions, which is owned by Fuji Xerox Asia Pty Ltd.

• Fuji Xerox Asia Pacific Pty Ltd is 100% owned by Japan-based global entity Fuji Xerox Co Ltd, and a subsidiary of the FUJIFILM Holdings Corporation (75% ownership and listed on the Japan Stock Exchange) and Xerox Limited in the USA (25% ownership and listed on the New York stock exchange).

For more information please visit www.dms.fujixerox.comMAJOR TENANT COMPOSITION BY INCOME

WALE PROFILE BY GLA

5+ YEARS

<5 YEARS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

84%

16%Fuji Xerox 18.02%

Bridgestone 11.73%

Scott’s Refrigerated Freightways Pty Ltd 15.84%

Woolworths Ltd 54.41%


PROPERTY TENANT GLA (m2) SITE AREA (m2) NET INCOME P.A. WALE* (YEARS BY INCOME) OCCUPANCY PAGE NO.

28 Bilston Drive, Albury-Wodonga Woolworths Limited 57,440 250,000$6,505,661

(as at 30 July 2016)5.1* 100% 8

101-103 William Angliss Drive, Laverton North Scott’s Refrigerated Freightways Pty Ltd 8,871 37,350 $1,894,641 12.7* 100% 10

213-215 Robinsons Road, Ravenhall Fuji Xerox Businessforce Pty Ltd 21,092 45,020$2,154,296

(as at 13 July 2016)9.0* 100% 12

365 Fitzgerald Road, Derrimut Bridgestone Australia Ltd 16,114 29,860$1,403,175 (as at 1 July 2016 – assuming 2% CPI increase)

3.7* 100% 14

Total 103,517 362,230 $11,957,773 6.8* 100%

BRIDGESTONE AUSTRALIA

• Woolworths Limited is an ASX listed top 20 company with extensive retail interests throughout Australia and New Zealand, and has a market cap of AUD$28 billion as at April 2016.

• Woolworths services in excess of 28,000,000 customers per week and is the largest food retailer in Australia and second largest in New Zealand.

• Founded in 1924, Woolworths has more than 3,000 stores across Australia and New Zealand, that span food, liquor, petrol, general merchandise, home improvement and hotels.

• Employer of more than 198,000 people and committed business partner of many thousand local farmers, producers and manufacturers.

• Woolworths Limited also owns and operates some of Australia’s most recognised and trusted brands including Dan Murphy’s Liquor, Big W, ALH Group, Woolworths Money, Woolworths Everyday Rewards and Ezibuy.

For more information please visit www.woolworthslimited.com.au • Bridgestone Australia Ltd is a subsidiary of Bridgestone

Corporation – the largest tyre manufacturer in the world.

• Bridgestone Corporation is listed on the Tokyo Stock Exchange, and has a market capitalisation of AUD$40 billion as at April 2016.

• Bridgestone Corporation has approximately 140,000 employees worldwide.

For more information please visit www.bridgestone.com.auS LIMITED

SCOTT’S REFRIGERATED FREIGHTWAYS

• Scott’s Refrigerated Freightways is one of the nation’s leading suppliers of refrigerated logistics with more than 60 years experience in linking many of the nation’s leading food and beverage manufacturers with retail supermarkets around the country.

• In May 2014 Scott’s became part of Automotive Holdings Group (AHG), a diversified automotive retailing and logistics group with operations in every Australian mainland state and in New Zealand.

• AHG is a top 200 listed company on the Australian Stock Exchange (ASX:AHG), with a market cap of AUD$1.2 billion as at April 2016.

• AHG is a diversified automotive retailing and logistics group with operations in every Australian mainland state and automotive retailing in New Zealand. The company is Australia’s largest automotive retailer, with operations in Western Australia, New South Wales, Queensland and Victoria.

For more information please visit www.scottsrf.com.au and www.ahgir.com.au

*WALE as at 30 June 2016


2 8 B I L S T O N D R I V E , A L B U R Y - W O D O N G A

PROPERTY ATTRIBUTES

• Developed in 2006 and set upon a substantial landholding of approximately 250,000 square metres is the purpose-built Woolworths Regional Distribution Centre comprising significant tenant infrastructure including state-of-the-art dedicated cool room complimented by further temperature controlled areas.

• The prominent office accommodation extends over two levels and is improved by a commercial kitchen, staff canteen and male and female amenities.

• The property includes 50 automated loading docks, together with finger docks for standard and low-belly B-Double trucks, enabling over 10km of pallet racks to be loaded and unloaded.

• In addition, the property includes 37,000 square metres of concrete pavement and 20,000 square metres truck parking area and a 484 vehicle carpark.

• The site offers extensive expansion potential given the low site coverage (circa 23%) and building envelope of the site (STCA).

• The Woolworths Distribution Centre directly employs more than 400 people and turns over $2 billion of stock each year.

• Industrial 1 zone under the City of Wodonga Planning Scheme.

• Fully leased to Woolworths Limited, a top 20 ASX listed company with market cap of AUD$27.9 billion as at April 2016.

• 5.1 years remaining on the current lease term (as at 30 June 2016).

LOCATION OVERVIEW

• The Wodonga Woolworths Regional Distribution Centre is located within the Logic Estate, situated on the Hume Freeway, and the Melbourne to Sydney rail line, Albury-Wodonga is well recognised as a major strategic hub along the eastern seaboard; a central location with the ability to service a number of major cities and regional centres. The Woolworths Distribution Centre supplies to 75 outlets across northern Victoria and southern NSW.

• Albury-Wodonga’s proximity between Australia’s two largest cities, Melbourne (3hrs by road) and Sydney (5.5 hrs by road) as well as Canberra (3.5 hrs road), provides key strategic advantages with the ability for more than 75 percent of Australia’s population able to be reached by next day transport.

• Logic Estate enables direct access to the Murray Valley Highway leading to Adelaide and other key freight destinations along the Murray River, and is a manufacturing, transport and logistics focussed employment precinct that caters for large scale developments of more than 3 Ha.

• Council has recently approved the sale of land to SCT to develop a rail intermodal at the Logic Estate. This will create a strategic advantage for occupiers and will provide a cost effective freight to and from Victoria’s north east, increasing competitiveness of exports from regional Victoria.


AREA SUMMARY

Office and Amenities 2,651m²

Warehouse 37,493m²

Cool Room 4,556m²

Temp. Controlled Area 12,740m²

Total GLA 57,440m²

Total Site Area 250,000m²(25 Ha)

Site Coverage 23.0%

TENANCY DETAILS

Lessee Woolworths Limited

Lease Commencement 30 July 2006

Lease Term 15 years

Lease Expiry 29 July 2021

Lease Option 10 x 5 years

Base Rent Reviews Fixed annual 2.50% increases

Passing Income $6,505,661 p.a. plus GST ($113.26/m²) as at 30 July 2016.

Outgoings The tenant directly pays outgoings including Land Tax (on a Single Holding basis), municipal, water, sewerage, drainage and fire services rates, Insurance etc. We note management fees are not recoverable.

Permitted Use Distribution centre, warehousing, offices, canteen and all ancillary uses to those uses or, at the Lessee’s election in writing, any other use from time to time permitted by law.

Leasehold Details The property is subject to a 300 year ground lease to Josona Pty Ltd, expiring 2306. If demanded, a rental amount of $1 pa is applicable. However there is ability to convert to freehold (please refer to online data room for further details).


1 0 1 - 1 0 3 W I L L I A M A N G L I S S D R I V E , L A V E R T O N N O R T H

LOCATION OVERVIEW

• Located within the prime industrial suburb of Laverton North, approximately 15 kilometres to the west of Melbourne’s CBD.

• The property is situated within the William Angliss Drive Industrial Estate.

• Prominent logistics location on William Angliss Drive which connects to Boundary Road to the north and Fitzgerald Road to the east, which in turn provides access to the Western Ring Road and Melbourne’s broader arterial road network.

• Highly sought after industrial precinct with notable nearby occupants including Bunnings Trade, Murray Goulburn, Spotlight, Bridgestone, Swire Cold Storage and Coles.

PROPERTY ATTRIBUTES

• The property comprises a high quality refrigerated storage warehouse/distribution centre originally constructed circa 2005 and extended circa 2013 with a main administration office, an inward and outward office, amenities, battery charge room, truck drivers rest area, workshop, truck wash bay, truck refuelling station and semi-trailer hardstand.

• The cold storage warehouse has freezer chambers with two anterooms to the eastern and western sides and has an ESFR sprinkler system.

• Additional car park is provided with separate access from William Angliss Drive.

• The site has full drive around access with loading provided via Roller Shutter Doors (RSD’s) to the northern and western sides.

• Site also provides a portal frame, steel deck clad workshop with pits recessed into the floor slab attached to the eastern side of the facility used for truck maintenance.

• Large concreted hardstand area of 8,925m2.

• The site offers extensive expansion potential given the low site coverage (circa 25%) and building envelope of the site (STCA).

• Industrial 2 zone under the City of Wyndham Planning Scheme.

• Fully leased for 15 years from 24 March 2014 to Scott’s Refrigerated Freightways Pty Ltd, a fully owned subsidiary of ASX listed company Automotive Holdings Group.


• Significant depreciation benefits available.


AREA SUMMARY

Ground Floor

Refrigerated Warehouse 6,994.3m²

Office and Amenities A+B 672.1m²

Workshop, Amenities and Plant

808.1m²

First Floor

Rest Area & Amenities 299.9m²

Mezzanine - Storage 96.4m²

Total GLA 8,870.8m²

Canopy 121.1m²

Truck Wash Bay 507.1m²

Concrete Hardstand 8,925m²

Site Area 37,350m² (3.735 ha)

Site Coverage 25.1%

TENANCY DETAILS

Lessee Scott’s Refrigerated Freightways Pty Ltd

Lease Commencement 24 March 2014

Lease Term 15 years

Lease Expiry 23 March 2029

Passing Rent $1,894,641 p.a. plus GST ($213.58/m²)

Base Rent Review Fixed annual 3.50% increases

Outgoings Net Lease. The lessee is responsible for the payment of all usual outgoings.

Security An amount equal to 12 months’ rent and outgoings plus GST (increased annually in proportion to rental and outgoings increases). Guarantor is Automotive Holdings Group Limited (AHG).

Permitted Use Storage and distribution, cold store and office with ancillary driver’s amenities, parking for trucks and vehicles, ancillary fuel depot and refuelling facilities for trucks and vehicles, ancillary service and maintenance facilities for trucks and vehicles, loading facilities and ancillary cleaning facilities for trucks and vehicles or any other use permitted by the Planning Scheme and approved by the Lessor in writing.


2 1 3 - 2 1 5 R O B I N S O N S R O A D , R A V E N H A L L

LOCATION OVERVIEW

• Located in Ravenhall approximately 20 kilometres north west of Melbourne’s CBD.

• The property is strategically located on the corner of Robinsons Road and Orbis Drive with rear frontage to Business Park Drive, within the Orbis Business Park.

• Excellent proximity to major road networks including Western Freeway via Robinsons Road (2.7 kilometres), Western Freeway via Ballarat Road (4.5 kilometres), Western Ring Road via Robinsons Road (6.1 kilometres), Western Ring Road via Ballarat Road (6.2 kilometres), and Princes Freeway (10.5 kilometres).

• Modern business park and logistics precinct accommodating a range of modern commercial and industrial facilities.

PROPERTY ATTRIBUTES

• Modern high quality office warehouse improvements constructed circa 2010.

• Office accommodation is set over two levels, providing a high level of accommodation and incorporating a 13 person Kone passenger lift.

• Fully sprinklered warehouse accessible via four (4) at grade roller shutter doors (RSD’s) to the buildings western elevation, and also incorporating a cantilevered canopy.

• Excellent minimum internal clearance of approximately 10 metres to the warehouse.

• Large cafeteria at ground level run by an external operator.

• Secured concreted loading area to rear of site.

• Extensive bitumen paved car parking provided to the front of the site.

• Large land holding with multiple street frontages and excellent exposure.

• Commercial 2 zone under the Melton City Council Planning Scheme.

• Fully leased to Fuji Xerox Businessforce Pty Ltd for 15 years from 13 July 2010. The company is an affiliate of Japan Based Global entity Fuji Xerox Co Ltd.


• Facility is utilised for business and document management services and is operated 24 hours a day, 5 days per week.

• In 2012 Fuji Xerox acquired Salmat’s business process outsourcing (BPO) for a reported $375m.

• The business has been operating in Australia for over 30 years as Salmat.



AREA SUMMARY

Main Office 2,884.8m²

Warehouse Office 2,411.6m²

Warehouse 15,753.0m²

Plant Room 42.7m²


Canopy 1,191.9m²

Site Area 45,020m² (4.502 ha)

Site Coverage 46.9%

TENANCY DETAILS

Lessee Fuji Xerox Businessforce Pty Ltd


Lease Term Fifteen (15) years

Lease Expiry 12 July 2025

Lease Option Two (2) further terms of five (5) years available

Passing Rent $2,154,296 p.a. plus GST ($102.14/m²) as at 13 July 2016.

Base Rent Reviews Annual CPI reviews (3% collar) with a market review (7% cap, 3% collar) on the eleventh (11th) year of the term. The lease is subject to an open market review at exercise of option.

Outgoings Net Lease. The lessee is responsible for the payment of all usual outgoings.

Security Equivalent to twelve months rent plus GST ($2,091,549 plus GST), reviewed on the commencement of the 11th year. Guarantor is Fuji Xerox Document Management Solutions Pty Ltd.

Break Clause The Lessee must provide the Lessor an amount equivalent to the rent payable until the end of the 12th year of the lease (i.e. 12 years term certain). The Lessee may elect to terminate the lease between the commencement of the 11th year and the end of the 12th year (albeit still paying 12 years equivalent rent), providing that it notifies the Lessor not less than 6 months prior to the end of the 10th year of the term. The Lessee must give to the Lessor not less than 60 days prior notice of the intended date to vacate. If the tenant does not break the lease they will have the right to a rent free period of 9 months from the commencement of the 11th year of the lease.


3 6 5 F I T Z G E R A L D R O A D , D E R R I M U T

LOCATION OVERVIEW

• Prime western industrial suburb of Derrimut, situated approximately 15kms west of the Melbourne CBD.

• The premises are located within the well regarded Gilbertsons Estate on the north western corner of Fitzgerald Road and Swann Drive, south of the Western Ring Road interchange and north of Boundary Road.

• Corner site provides a high level of exposure.

• Prominent logistics location with excellent proximity to major road networks including Western Ring Road (800 metres), Boundary Road (1.3 kilometres) and Princes Freeway (5.2 kilometres).

• High profile logistics precinct with notable nearby occupants including Kenworth, Blackwoods, Bulla, Harris Refrigerated Transport and Aldi.

PROPERTY ATTRIBUTES

• Modern office/warehouse facility constructed circa 2003, which includes a service centre area with a truck service pit, with rear attached high clearance warehouse with a further separate high clearance warehouse developed in 2007 and extended in 2012.

• High clearance, sprinklered warehouse accommodation of dado construction.

• Extensive loading docks provided, both recessed and at-grade.

• Excellent levels of natural light provided to warehouse.

• Two level modern state head office building providing a high standard of accommodation.

• Ample bitumen paved car parking provided to the front of the site.

• The property has corner frontage to Fitzgerald Road and Swann Drive with access to both streets.

• Industrial 2 zone under the Brimbank City Council Planning Scheme.

• Fully leased to Bridgestone Australia Ltd for 13.7 years from 1 July 2006. Bridgestone Australia Limited is a subsidiary of Bridgestone Corporation which is listed on the Tokyo Stock Exchange.


• The property is utilised as the state head office for Bridgestone as well as a tyre service centre and state distribution centre.



AREA SUMMARY

Office 1,155.4m²


Office 25.4m²

Plant 18.7m²



Site Area 29,860m² (2.986 ha)

Site Coverage 54.0%

TENANCY DETAILS

Lessee Bridgestone Australia Ltd


Lease Term Thirteen (13) years eight (8) months five (5) days (13.7 years)

Lease Expiry 5 March 2020

Lease Option Three (3) further terms of six (6) years each

Passing Rent $1,403,175 p.a. plus GST ($87.08/m²).

This is an estimated rental as at 1 July 2016 assuming a CPI review of 2.00% at the 1 July 2016 review date.

Base Rent Review Annual CPI reviews, with a minimum (collar) of 1% increase and maximum (capped) 4% increase. Market review at exercise of option whereby the rental for any further term must not be less than 95% of the previous passing rental.

Outgoings Net lease. The lessee must pay or reimburse all outgoings.

Permitted Use Warehousing, storage and sales of tyres, fitting of tyres to cars and trucks and offices.


V I C T O R I A N L O G I S T I C S M A R K E T O V E R V I E W

$0

$1

$2

$3

$4

$5

$6

$7

2007 2008 2009 2010 2011 2012 2013 2014 2015

Bill

ions

$A

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Industrial Sales Volumes by State

NSW VIC QLD ACT WA SA NT TAS

Source: Colliers International

-15.0

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Dec

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Ann

ual %

p.a

. Australian Commercial Property Total Return by Sector

All Property Retail O�ce Industrial

Source: Colliers International, MSCI IPD Australia

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Prime Industrial Cap Rates and Government Bonds by Selected Cities

Cap Rate (Dec 2015) 10 yr government bond (per cent per annum)

Source: Colliers International, Trading Economics

-

50,000

100,000

150,000

200,000

250,000

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MonthlyTrade Volumes, Australian Ports

Sydney Melbourne Brisbane Adelaide Perth

Source: Colliers International, Sydney Ports Corporation, Port of Melbourne Corporation, Port of Brisbane, Flinders Ports, Fremantle Port

$0

$1

$2

$3

$4

$5

$6

$7

2007 2008 2009 2010 2011 2012 2013 2014 2015

Bill

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Ann

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.

Australian Commercial Property Total Return by Sector



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The Australian industrial and logistics sector has been the recipient of capital inflows from abroad as investors continue their pursuit for yield. With the exception of Tokyo, where negative 10 year bond yields indicate the lack of confidence in the investment market, Melbourne offers the greatest bond spread of major Asian capital

city markets, at 458 basis points. Combined with a total return that is outperforming all other major asset classes in Australia, industrial property in Australia – and particularly Melbourne, Victoria – is seen as particularly high yielding asset in an economic environment that has seen interest rates globally remain very low for some time.

Logistics assets continued to outperform all the other major asset classes as an overall investment performance. Considering both the capital and income elements, industrial assets returned the highest value change plus net income accrual, relative to the capital employed. Based on IPD data, this total annual return for industrial assets was the highest at 15.5 percent, 80 basis points greater than the 14.6 percent returned by office properties.

AUSTRALIAN COMMERCIAL PROPERTY TOTAL RETURN BY SECTOR

PRIME INDUSTRIAL CAP RATES AND GOVERNMENT BONDS BY SELECTED CITIES


VICTORIA’S VACANCY ON THE DECLINE

Melbourne is the second largest industrial market in Australia with 24.5 million m² of industrial space (greater than 5000m²). The majority of new construction has reverted to being pre-committed rather than speculatively built, which has led to tighter vacancy rates.

The combined Prime/Modern vacancy rates across the whole Victorian market (for buildings >10,000m²) is currently assessed at 4.5% whilst the secondary/tertiary vacancy is lower at 3.0% driven down by a number of owner occupier transactions. These vacancy rates have reduced from 5.9% and 3.5% respectively as at 6 months prior.

Vacancy in the Western sub-market is assessed at 4.6% (for buildings >10,000m²), down from 5.9% as at 6 months prior.

*The above information taken from Melbourne Industrial Vacancy Study prepared by Urbis February 2016.

POPULATION GROWTH

Melbourne is home to 4,529,500 people and is Australia’s second largest city by population, Greater Melbourne is the fastest growing city in Australia, increasing by 91,600 residents in the year to June 2015. This is also the fastest growth rate in the country, at 2.1 percent. Of particular note, Melbourne’s west has one of the fastest growing populations in Victoria. Albury-Wodonga is Victoria’s fastest growing regional city.

INFRASTRUCTURE – WESTERN DISTRIBUTOR

The Victorian Government has recognised the need for infrastructure investment to retain the states place as the logistics capital of Australia.

As a result, the $5.5 billion Western Distributor project delivers an integrated package of works to improve and build on Melbourne’s western motorway network. The proposal includes the following key elements:

• Widening the West Gate Freeway from 8 to 12 lanes between the M80 and Williamstown Road.

• A tunnel under Yarraville and a second river crossing over the Maribyrnong.

• An elevated road along Footscray Road with direct links to CityLink, the Port of Melbourne and the western edge of the CBD.

• The longest managed motorway system in Australia from Geelong to Pakenham.

• 4.5km of new cycling and pedestrian paths including completion of the Federation Trail.

• Widening the Monash Freeway from 8 to 10 lanes between EastLink and South Gippsland Highway, and from 4 to 6 lanes to Clyde Road in Berwick.

• Webb Dock access improvements – upgrading Cook Street and the West Gate Freeway-to-Bolte Bridge ramp to complement works already underway and improve safety and access from Webb Dock.

More than 200,000 vehicles a day rely on the West Gate Bridge, with the growing west creating additional pressure. Key benefits of the Western Distributor will include:

• An alternative to the West Gate Bridge with a second river crossing.

• Improve travel time reliability.

• Daily peak time travel times from the west slashed by up to 20 minutes.

• 6,000 fewer trucks on the West Gate Bridge.

• 6,000 fewer trucks on local streets in the inner west.

• Better connect Melbourne’s road network and improve access to the city.

• Up to 50% time savings for trucks to the Port of Melbourne.

• $35 million a year savings for truck operators. ALBURY-WODONGA

• The Albury-Wodonga region services a labour market in excess of 74,000 people, which experienced an annual growth rate of 5.6 percent on average between December 2012 and December 2014.

• Albury-Wodonga is recognised as Australia’s 20th largest city with a population of 90,000* residents and services a regional population of circa 180,000. The twin cities are the fastest growing among the Regional Cities Victoria Group.

• This ideal logistics location has access to major road and rail transport corridors and has attracted many major logistics and food and beverage manufacturers to the region including: Mars, Asahi, Visy, Nestle, Pact Group, Uncle Toby’s, Border Express, Greenfreight and Murray Goulburn.

• Logic Estate comprises in excess of 600 hectares of land and is a significant infrastructure project capitalising on its strategic position along Australia’s premium freight corridor, the Hume Freeway. The Logic Estate provides a full interchange from the Hume Freeway capable of dealing with B doubles and the future next generation high productivity vehicles.


PORT OF MELBOURNE

Melbourne is also home to Australia’s largest port, with year on year annual growth in container trade at the Port of Melbourne equating to 2.18 percent as at December 2015.

The following facts and figures provide an insight into the port’s operations and its role as a key economic asset:

Trade

• Almost 2.6 million containers handled annually.

• Around 1000 new motor vehicles per day on average.

• Total trade of more than 87 million revenue tonnes.

• Total trade value around $92 billion.

Infrastructure

• 36 commercial berths.

• 7 kilometres of quayline.

• Over $2 billion invested in port infrastructure over the last decade.

Shipping and navigation

• Around 3000* ship visits annually.

• First port in Australia to operate as a VTS authority under Commonwealth accreditation.

• Professional hydrographic survey.

Environs

• 100,000 hectares of port waters.

• 21 kilometres of waterfront.

• Borders four municipal councils.*The above information taken from the Port of Melbourne Corporation website (www.portofmelbourne.com).

CONCLUSION

The Melbourne industrial property market continues to see demand grow from logistics and warehousing users, and this is underpinned by the strong performance of the port. Although some older manufacturing industries, such as the clothing/footwear and automotive industries, have been in steady decline for a number of decades now, the logistics sector and emerging manufacturing industries such as food (particularly

dairy) production and alternative automotive manufacturing (ATVs, caravans etc.) are going some way to fill this gap in demand. Overall, the Melbourne industrial market will be dominated by the logistics and warehousing sector, and those areas that are well located to Melbourne’s freeway network, are the areas where demand will be concentrated.

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MONTHLY TRADE VOLUMES, AUSTRALIAN PORTS

Chris O’BrienRegional Director - Pacific Industrial & Logistics Capital Markets Mobile: +61 407 664 233 [email protected]

Matt Haddon Senior Managing Director Industrial & Logistics - Pacific



BASIS OF SALE

The portfolio will be sold via an International Expressions of Interest campaign closing 3pm AEST Wednesday 15 June 2016. This portfolio will be sold in one line.

EOI’s should be lodged in writing via email or in person with the exclusive marketing agents on or before the closing date. The EOI are not required to be lodged in any subscribed form however as a minimum the following information should be provided:

• Full name of interested party (including names of principal directors/shareholders)

• Proposed purchase price

• Exchange and settlement terms including funding

• Details of the interested parties

• Specific due diligence (if any)

• Any other special conditions attached to the offer.

The Vendor reserves the right to not accept any offer and without limitation, nor is the Vendor obliged to accept the offer with the highest consideration.

DUE DILIGENCE

To assist in the assessment of this offering, due diligence information is available via an online data room managed by the Vendor’s lawyers. Access to the data room will be granted upon request and approval from the vendor and their legal representatives, which will be subject to confidentiality conditions. To arrange access to the data room please contact the exclusive sale agents.

TERMS OF SALE

The Vendor may, in its absolute discretion, suspend or vary the sale process, negotiate with any party who submits an EOI with any other party, enter into a binding contract with any party at any time before or after the EOI closing date and/or at any time prior to exchange of binding contracts, may withdraw the property from sale.

Colliers and CBRE are pleased to offer this portfolio to the market and we strongly recommend your participation.

INSPECTIONS

Inspections may be made by contacting either of the selling agents.

S A L E P R O C E S S

LODGEMENT OF OFFERS

All lodgement of offers to be sent to:

CBRELevel 34,

8 Exhibition Street


Australia

Tony IulianoNational Director, Industrial


Adrian Rowse Director, Industrial


Colliers InternationalLevel 30

367 Collins Street


Australia

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