This article is from the Australian Property Journal archive
A LOCAL private investor has snapped up a Knoxfield industrial property in Melbourne’s east for $6.70 million on an attractive yield of 6.72%.
Cushman & Wakefield’s Andrew O’Connell and Robert Colaneri handed the sale of 13 Gilbert Park Drive, which was sold fully leased to the following tenants, Ferntree Gully Auto Sales and Zorack.
The sale price reflects a land rate of $1,573 per sqm.
The agents said the property attracted strong interest, mainly from investors. They added that it is located in a tightly held industrial market with potential upside.
Colineri said there are more buyers hunting for industrial property due to investors chasing higher yields, when compared to office and retail investments.
The property comprises a modern two level office of 805 sqm with an attached warehouse of 3,455 sqm providing a total building area of 4,260 sqm situated on 7,092 sqm of industrial 1 zoned land. The property features include four container height roller shutter doors to warehouse with access from three elevation and substantial off street car parking. It is leased to tenants Ferntree Gully Auto Sales and Zorack, on a passing income of $450,000 with a strong 3.0% fixed annual reviews and WALE of 5.2 years.
He added that combined with the limited supply, the huge pool of buyers and strong demand from owner occupiers looking to own their own building, industrial values have gone through the roof.
Colineri tips rents will increase and incentives will fall further due to the limited supply.
Cushman & Wakefield’s latest research shows industrial land values have increased by 50% to 100% across Melbourne.
National director Tony Crabb said land prices in Melbourne are soaring at unprecedented rates not seeing in two decades.
Australian Property Journal
