VICTORIA – In a strategic play that underscores the continued investor appetite for land-rich, income-generating industrial assets, Harmony Property Investments has divested 30–56 Encore Avenue, Somerton VIC for $13.55 million.
The off-market transaction reflects the ongoing demand for core-positioned logistics sites with long WALE profiles and underlying land value in one of the most supply-constrained logistics precincts in the country.
Located in Melbourne’s thriving northern industrial corridor, the 5.3-hectare site was snapped up by a Sydney-based investor in a deal negotiated by Cushman & Wakefield’s Chris Jones, Adrian Rowse, and Charlie Holmes.
Anchored by national tenant Tyrecycle, Australia’s leading tyre recycling company, the property boasts a 10.3-year lease as at June 2025 with current income of $782,864 per annum. The tenant has operated from the site for more than a decade and proactively extended its lease in 2021—speaking volumes to the strategic significance of the location and infrastructure.
Strategically positioned with 360-degree access to the Hume Highway, Western Ring Road (M80), Hume Freeway (M31), and Tullamarine Freeway (M2), the property sits adjacent to the Austrak Business Park and Intermodal Facility and within close proximity to the Melbourne Airport and future North East Link.
But the real story here is the land-to-building ratio. With just 3,532 sqm of GLA across a vast landholding, the site offers minimal structural risk and significant long-term development flexibility.
According to Chris Jones of Cushman & Wakefield, “This investment is overwhelmingly underpinned by land value, with the estimated vacant land component forming over 90% of the total value."
“That value proposition is resonating across the industrial market, particularly with patient capital looking to hedge against construction cost volatility and shifting occupier trends. In an environment where land is king and secure cash flow is golden; Harmony Property Investments Somerton divestment is both well-timed and well-played”.
