Harry Stamoulis buys Woolworths distribution facility for $90.6 million

For Growthpoint, the deal represents a 37.7 per cent premium on the asset’s June 2017 book value.

“This is a fantastic outcome for Growthpoint’s security holders and a strong endorsement of the high-quality and highly desirable property held within the portfolio,” managing director Tim Collyer said.

“The sale of the Mulgrave property is consistent with recent guidance that we would seek to realise material upside in the sale of assets with future development potential to a higher and better use.

“Management will continue to evaluate the existing portfolio for further opportunities where higher underlying values can be realised.”

The transaction reduces Growthpoint’s gearing to 38.4 per cent, the lower end of its target range.

Quick sale

Mr Stamoulis, who bought a landmark tower on Collins Street last year for $125 million and weeks later sold an even bigger skyscraper on Spencer Street, swooped quickly on Woolworths’ Victorian head office and distribution facility on Wellington Road after Growthpoint put in on the market last month.

Dawkins Occhiuto and CBRE were appointed to sell the 68,144 square metre facility that sits on a 19-hectare infill parcel in Melbourne’s south-east.

Woolworths has a series of lease extension options on the property, next to a large housing estate developed by Mirvac.

Walter Occhiuto of Dawkins Occhiuto noted the property, purpose-built for Woolworths, had previously been acquired in a portfolio by Growthpoint and was on the market for the first time on its own.

Woolworths have tenure at the site until 2071, but is likely to exit well before that to find a more advanced facility.

“At that point it will become a redevelopment play,” Mr Occhiuto told The Australian Financial Review.