Adelaide-based commercial property syndicator Harmony Property Syndication has paid $10.75 million on a yield of 7.1 per cent for a substantial industrial property at Hallam in Melbourne’s south-east.
According to Savills’ Industrial Directors, Chris Jones and Ben Hegerty, the 1-5 Siddons Way property was sold subject to a long term lease, expiring in 2026, to national tenant Pakcentre Marketing Services, at a current rental of $765,920 per annum net.
The property comprises a 9574 square metre office and warehouse facility, with nine metres clearance and canopied loading docks, on a 15,300 square metre allotment.
Mr Jones said the price reflected the tightly held market and the lack of stock in the price range.
"The sale produced 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," he said.
"This is a tightly held sector of the market with not a lot of opportunities and the price reflects that."Mr Hegerty said the property had attracted a high level of enquiry from local, interstate and off-shore investors looking for attractive yields, secure lease profiles, prime locations and potential upside.
"We have sold properties totalling more than $300 million over the last eight months driven by strong fundamentals and a lack of alternative assets capable of delivering comparable yields and investment security,’’ he said.
He said the demand continued to put yields under pressure with many recent sales pushing the 7 per cent barrier.
The vendor was a private group of interstate investors.