Warrington spends $40m on first interstate asset

John Poynton-chaired Warrington Property Group has made its first interstate acquisition, picking up a 7.9 hectare industrial site in Melbourne from Cbus Property in a deal understood to be worth around $40 million.

The property is part of the Estate One industrial development in Melbourne’s Dandenong South and represents Warrington’s first acquisition outside Western Australia.

The warehouse site comprises three separate lease parcels, totalling 27,919 square metres.

Tenants include McDonalds Restaurants distribution partner Martin Brower, Ceva Logistics and Personalised Freight Management.

The sale, which occurred off-market, reflected an initial yield of 7.83 per cent.

Warrington Property partner Chris Weaver said the acquisition signalled the group’s intention to grow its presence outside WA.

In WA, Warrington has around $300 million worth of assets under its control, including Grant Thornton’s offices on Kings Park Road, AFG’s headquarters in West Perth,  the Eastgate Shopping Centre in Rivervale, as well as a range of industrial assets in Kewdale, Welshpool and Belmont.

“Our entry into the eastern states market fits with our overall philosophy – which is to buy well-configured real estate in the best location possible and develop good working relationships with our tenants to meet their demands, now and into the future,” Mr Weaver said.

Mr Weaver said Warrington would also look closely at the Sydney office and industrial markets, as well as Melbourne.