Ultra-Rare Land-Rich Agri-Industrial Portfolio Hits the Market
One of the most significant, land-rich agri-industrial portfolios to become available in recent times has hit the market.

The Gibsons Groundspread Portfolio comprises 4 sites in Victoria’s south east region, each with 10-year leasebacks to leading agricultural group Gibsons Groundspread, with a total underlying land component of 81.945ha.

Fitzroys’ Marco Sandrin and Brent Glassford have been appointed to manage the Expressions of Interest campaign, closing Wednesday, March 1st at 2pm. The 4 properties are being offered for sale in-one-line or separately.

The properties, located in Rosedale, Dutson, Yarram and Bayles, return a combined $1.394 million in annual income from their respective 10+5+5-year, rare triple net leases.

The properties include:

• 2194 Princes Highway, Rosedale - the 2.506-hectare site returns $569,000pa and 3,098sqm of buildings across a storage and blending warehouse, heavy vehicle workshop and lime shed, and has a 20,000L diesel fuel storage area.

• 980 Longford-Loch Sport Road, Dutson - at 62.64ha, the Dutson site is the largest of the portfolio. It has a 30,000t blending facility, 406sqm office and workshop and multiple sheds with 5,000t undercover storage capacity, a compost screening plant, 60,000L diesel fuel storage and composting area with 30,000t product storage capacity. It returns $210,000pa.

• 33 Pound Road West, Yarram - the 9.095ha site has 1,142sqm office and blending facility as well as a workshop and storage shed, and 10,000L diesel fuel storage area. It returns $395,000pa.

• 100 School Road, Bayles - located within the Shire of Cardinia, the 7.704-hectare site has 1,064sqm of buildings across office, fertiliser bunkers and sheds with 30,000L diesel fuel storage area.

“Agribusiness-tenanted investments have proven to be highly sought-after while we experience a sustained period of strong growing conditions and heightened commodity prices,” Sandrin said.

“There remains a severe shortage of warehousing assets available to the market. Industrial real estate is still in strong demand with warehousing and logistics capabilities at a premium.

“Private investors and syndicates will no doubt recognise the very rare opportunity to acquire agri-industrial investments leased to a quality tenant that has a proven 70-year track record of industry-leading practice in Victoria.”

Gibsons Groundspread was originally founded by Bill Gibson in 1953 and today is a leading agricultural distributor and spreader of organic, commercial and custom blended bulk fertiliser and soil amendment solutions, operating locally from strategically placed state-of-the-art production and distribution sites.

Combining the latest technology and science with a 70-year history, Gibsons has developed a wide range of innovative crop and soil solutions and services to provide farmers and growers with the tools and resources to achieve a profitable return on investment.

The Rosedale, Dutson and Yarram sites are all in the Shire of Wellington, which has a population growth forecast of 25% over the next 2 decades. The Bayles property is within the Shire of Cardinia, one of Victoria’s fastest-growing municipalities, within neighbouring suburb Koo Wee Rup having seen an annual population growth of 4.0% over the last decade.

International Tenant Takes Up Prime Chapel Street Space
London-based boutique Ivory Thread Bridal is that the latest new tenant to take up space in the heart of Chapel Street, South Yarra as arguably Australia’s most famous shopping strip continues its post-COVID rebound.

Fitzroys’ Lewis Waddell negotiated the 3-year lease at $600 per sqm net at 487 Chapel Street on behalf of a local long-term investor.

Waddell said this is Ivory Thread Bridal’s 1st boutique in Australia after working in London.

“Chapel Street presented a more affordable option compared to High Street, Armadale and the boutique will join multiple like-minded operators in the area,” he said.

Eternal Bridal recently leased 517 Chapel Street in another deal by Waddell, that marked the tenant’s notable move from High Street, Armadale – a reversal of the trend that emerged in the mid-2000s, when some Chapel Street retailers began to make the move to the then-more affordable High Street. Another bridal studio, Rajashree, has just opened at 448 Chapel Street.

According to Fitzroys’ latest Walk The Strip report, Chapel Street, South Yarra’s vacancy rate has nearly halved in just 2 years, falling from 20.4% in 2020 to sit at 10.7% currently.

“Vacancy between the Jam Factory and Capitol Grand Building in particular has decreased rapidly over the last 12 to 18 months. It’s feeling really vibrant and high-quality operators are looking to this part of South Yarra.”

Waddell said mostly fashion and beauty operators enquired into the primely-located space.

Waddell has also recently negotiated the leases of 505 Chapel Street to fashion retailer Casa Amuk, which is moving from the Prahran part of the strip, and men’s clothing label Calibre at 483 Chapel Street, from where it will run a clearance outlet in addition to its recently leased 543-545 Chapel Street site. He has also just leased 587 Chapel Street to Portobello Jewellers.

“Landlords are meeting the market, and tenants are finding the rent and demographic opportunities on Chapel Street so appealing we’ve got tenants optimising their position within the area as well as actually moving from a different location altogether to get into the strip.”

Other recent fashion entrants include Saba and Gorman’s new flagships at 576-584 Chapel Street, as well as Anna Thomas and shoe retailer Zomp at 524-564 Chapel Street.

These moves followed the openings of Joe Bananas and M.J. Bale, also in deals by Waddell. Other new entrants to the strip include women’s fashion boutiques Lilita Martin, LTRO Studio and Leaterials, and retailer Landes Warehouse optimised its position.