A Melbourne based private investor has paid $15 million on a tight yield of 6.5 per cent for a substantial industrial property at Epping in Melbourne’s northern suburbs.
According to Savills’ Industrial Directors, Chris Jones and Ben Hegerty, the property was sold subject to a new 20 year lease to Kingfield Galvanising Pty Ltd at $994,768 per annum net.
The 35 O’Herns Road property comprises a 7235 square metre office and warehouse facility on a 20,382 square metre allotment with 2400 square metres of hardstand and parking for 89 vehicles.
"This was both a strong result for the vendor and a fantastic investment opportunity for the purchaser with a very solid lease profile in a well-regarded location with regard to prime road transport options and market growth,’’ Mr Jones said.
Mr Hegerty said properties with long term leases in prime locations would always attract a premium.
"You don’t find many properties in prime locations with 20 year leases and that is reflected in a relatively tight industrial yield,’’ Mr Hegerty said.
The vendor was joint venture partners Corplex and Genis Steel.