A highly desirable investment opportunity in the tightly held suburb of Port Melbourne has just hit the market. The property at 7 Phillip Court, Port Melbourne, is leased to Pet Resorts Australia, a pet daycare and accommodation business with 10 operations along the eastern seaboard of Australia.
The investment fundamentals make this asset even more attractive with a 10-year lease term set to expire in August 2033 and further 10-year options through to 2063. Current rent sits at $332,615 per annum, excluding outgoings and GST, and rental growth is a certainty given the favourable fixed annual 3.5% increases throughout the lease term.
The property, which sits on a 1,738sqm* Industrial 1 Zone landholding, has been brought to market exclusively through Colliers' Ryan Milivojac, Yvonne Zhou, and Christian Hatzis, with price expectations over $7 million.
"This is the kind of investment offering the market wants to compete for. It's the perfect combination of sound investment fundamentals, and we expect strong interest from local, national and offshore investors.
Whoever secures this exceptional asset will be very satisfied with the favourable rental growth throughout the term," said Ryan Milivojac, Manager, Melbourne City Sales | Investment Services.
Christian Hatzis, Colliers Executive, Melbourne City Sales | Investment Services, added, "We've got a tenant that is a proven commodity in their industry across the country and who has identified that this location in Port Melbourne can be their home until at least 2033. That kind of income security can be hard to find.”
Located just 3km from Melbourne's CBD, Port Melbourne's evolution continues, with major parts of the suburb being rezoned for residential and mixed-use development. This has further constrained the supply of industrial assets, ensuring they will remain tightly held and fiercely competed for when they come to market well into the future.
7 Phillip Court, Port Melbourne is for sale via International Expressions of Interest closing Thursday 20th March 2025 at 2 pm AEDT.
