Australian Unity has paid $12.975 million on a 7.3 percent yield for a fully leased office and warehouse complex at Springvale.
Australian Unity has paid $12.975 million on a 7.3 percent yield for a fully leased office and warehouse complex at Springvale in Melbourne’s industrial south-east, in a deal brokered by Savills.
Located about 21 kilometres from Melbourne CBD, the 1651-1657 Centre Road property comprises 10,987 square metres of buildings including a 9,910 square metre warehouse, and office, truck workshop and canteen components, on a 29,640 square metre site.
According to Savills National Industrial Directors, Chris Jones and Ben Hegerty, who negotiated the deal, the property was sold subject to remaining lease tenure of just north of 4 years to global warehousing and freight forwarding manager, Mainfreight Distribution Pty Ltd, at an annual rental of $948,000.
Mr Jones said the property offered secure income from a highly regarded international tenant, in an established southern eastern locality with excellent main road frontage.
“This was an astute purchase of a property which offered sound investment prospects in a continually re-gentrifying locality and importantly with very low surrounding vacancy.
“With a record $1.87 billion in industrial property sales in the 12 months to June, we are now seeing a growing level of demand for this type of asset as fund managers seek affordable investments in tightly held locations.
“The demand also reflects a growing acknowledgment that the industrial market in Victoria is responding well to the post mining boom economy with leasing now trending at a decade high,” Mr Jones said.
Mr Hegerty said the property, which last sold in February 2014 for $10.695 million, had attracted a wide range of potential buyers including significant interstate and off-shore interest.
“A well located property with a bluechip tenant and a secure lease will always attract attention and this was no exception,” Mr Hegerty said.
The vendor was MRS/Harmony.