This article is from the Australian Property Journal archive
WESTERN Australia-based Mair Property Funds Limited has forked out $6 million for an office/showroom complex at Lynbrook in Melbourne’s south-east, its second Victorian acquisition this year.
Savills’ industrial directors Chris Jones and Ben Hegerty sold the 42 Northey Rd property, located within the Lyndhurst Business Park.
The sale price reflects a 8.2% yield. The property comprises a 3,393 sqm of space and 78 on-site car spaces on a single title 12,570 sqm site.
Jones said the property was sold subject to secure 10-year leases to Austral Bricks and One Steel at a combined $491,876 p.a. net, with options to extend to 2023.
“This property proved very attractive as a syndication vehicle given its excellent growth prospects in one of Melbourne’s major growth corridors and industrial precincts,” Jones said.
Hegerty said the sale provided an opportunity to capitalise on the lack of good quality industrial investments within the tightly held, south-eastern market.
He said the potential to subdivide (STCA) the two buildings on separate titles and ongoing depreciation benefits were additional considerations.
The deal brings to more than $300 million in industrial investment sales concluded by Jones and Hegerty in Melbourne this year.
Australian Property Journal
