This article is from the Australian Property Journal archive
A PRIME industrial investment within the Northcorp Business Park in Melbourne’s western suburb of Broadmeadows has sold for $5.76 million, on an initial yield of 10%.
A local private investor bought the 1.5ha site which includes office/warehouse facility leased to adhesive company, Bostik Australia on a 10-year lease expiring 2015 with two, five year options.
CBRE’s Rory Hilton and Gab Pascuzzi steered the marketing campaign for the 130 Northcorp Boulevard property on behalf of Commercial Stone Pty Ltd.
Hilton said the northern industrial market was traditionally dominated by owner occupiers.
“Investment sales in the north are somewhat rare compared to other Melbourne industrial regions, however the purchaser was attracted to the strength of the lease covenant, solid cash flow and the ability for future expansion, subject to council approvals.
“The property is currently returning approximately $575,843 net per annum and conveniently located to surrounding transport networks, being approximately 8km from Melbourne Airport,” he added.
Pascuzzi said the sale represented one of the three industrial investment sales recently managed by CBRE in the tightly held northern industrial market.
PropertyReview