Noble Park Industrial Estate Exceeds Return Targets

Terraplex has successfully completed the sell-down of its 10-unit industrial estate on Princes Highway, Noble Park, Victoria, purchased in October 2024 for $44.6 million. The asset, acquired through a single-asset trust and syndicated to the firm’s network of sophisticated and wholesale investors, initially targeted an internal rate of return (IRR) of 15%. The final result has surpassed initial guidance, delivering investors an IRR in excess of 30%.

“We are delighted to have achieved such strong returns in such a short timeframe for our investors,” said Rob Wallace, Director at Terraplex. “This investment showcases our ability to identify opportunities and execute a clear strategy—buying wholesale, selling retail, and achieving a 23% premium on the original purchase price for the estate within a short period of time.”

From the outset, the strategy focused on a quick turnaround, returning both initial capital and profits to investors. While the industrial property market has stabilised after a period of rapid growth, Terraplex reports continued buyer demand for units in the 1,000–3,000 sqm range from both investors and owner-occupiers.

Hobart Office Market Benefits from Tight Vacancy

Terraplex also reports strong leasing performance in the Hobart CBD, where tight vacancy rates and limited supply continue to drive rental growth and minimise incentives.

A recent leasing outcome was a 12% uplift in rent at Terraplex’s 11,675 sqm office building at 134 Macquarie Street, fully leased to the Tasmanian Government following a mid-term market review.

“Hobart remains a compelling investment market,” said Anthony Wilson, Director at Terraplex. “The limited new supply pipeline and high construction cost thresholds mean that current market rents are significantly below what would be required to justify new developments. This dynamic is likely to continue supporting rental growth for quality existing assets.”