Tullamarine industrial asset sells following strong investor competition

Melbourne, Australia – A high-quality, multi-tenanted industrial asset in Melbourne’s tightly-held airport precinct has been sold, highlighting continued investor demand for well-located industrial investments.

The property at 1–3 Saligna Drive in Tullamarine comprises a 5,075sq m logistics and warehousing facility on a substantial 9,062sq m landholding in one of Victoria’s most sought-after industrial markets.

The property is anchored by national industry-leading tenants Protecta Group Australia and Scott Automation & Robotics, providing a diversified income stream supported by a strategic infill location near Melbourne Airport and key arterial road networks.

It was purchased by a private investor for $12.4 million in a deal negotiated by Knight Frank’s Daniel De Sanctis, Harley Bowen, Thomas Dodd and Elliot Ryan on behalf of the vendor, Tullamarine Estates Pty Ltd.

The property was sold with a WALE of 3.36 years and a passing rental of $751,903.

Features of the property include a 10.5m ridge height warehouse clearance, three on-grade roller doors, one recessed loading dock, five street crossovers, a 5m cantilevered canopy and 79 car spaces across both warehouses, supporting efficient logistics and warehousing operations.

Mr Bowen said the sales campaign attracted strong interest from institutional investors, syndicators and private capital, resulting in a highly competitive process.

“The asset ultimately transacted on a strong yield, reflecting the continued depth of demand for quality industrial assets in core infill locations,” he said.

“Tullamarine is one of Victoria’s strongest performing industrial markets.

“It continues to attract significant interest given its proximity to critical infrastructure and ability to support last-mile distribution and freight operations “Positioned just minutes from Melbourne Airport, the property benefits from immediate access to key arterial road networks including the Tullamarine Freeway and Western Ring Road.

“This enables seamless access to Melbourne’s CBD, the northern and western industrial corridors, and the broader metropolitan freight network.” Mr De Sanctis added that the sale outcome reflects broader market conditions.

“The result reinforces the strength of Melbourne’s industrial investment market, with investors continuing to target assets offering secure income and future optionality,” he said.

“Opportunities to acquire assets with scale, accessibility and tenant diversity in sought-after infill precincts such as Tullamarine remain tightly held and highly sought after.”

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For further information, please contact:
Vanessa De Groot – Marketing & Communications, Knight Frank
Vanessa.degroot@au.knightfrank.com +61 410 460211

Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, the Knight Frank network has 600+ offices across more than 50 territories and more than 20,000 people. The Group advises clients ranging from individual owners and buyers to major developers, investors, and corporate tenants. For further information about the Firm, please visit www.knightfrank.com.