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Five bidders drive record industrial yield

Property Markets / Transactions

Australia

Jun 11 2017

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June 9, Melbourne – 

Five bidders from a strong winter auction crowd have pushed the price of a Moorabbin industrial complex to $2.305 million at what is believed to be a record yield of 4.5 per cent for an industrial property in Melbourne’s south-east.

According to selling agent, Teska Carson’s George Takis, the property sold at a massive $1089 a square metre and $350,000 above the vendor’s reserve. 

Mr Takis said the five bidders had been attracted by the location on Keys Road in the heartland of Moorabbin’s industrial precinct, the diverse tenancy profile, and the potential for future development in an area which has undergone significant gentrification in recent years.

``Buyers were looking at a diverse existing investment in an excellent location along with the potential of a fantastic site with main road frontage in a precinct which has seen a high level of development and strong capital growth.

``There was also the recognition that opportunities to buy a property with four tenancies on Keys Road are extremely rare,’’ Mr Takis said.

He said the record yield also reflected the recent shift of investors to industrial property attracted by yield and the growth potential in key south-eastern precincts.

`Yields for this type of industrial property are still achieving up to 9 per cent in the south-east. From that point of view this was an extraordinary result and part of that is the lack of stock and extremely low yields on offer for other types of property,’’ Mr Takis said.

The 1-4, 53 Keys Road property, comprises a 970 square metre complex of four buildings including a café, a warehouse and two modern buildings with container access and hardstand.

The 2116 square metre site has 27 metres frontage to Keys Road and offers easy access to major arterial roads including the Nepean Highway and Dingley Bypass via Chesterville and Warrigal roads. 

The property was sold subject to four short term tenancies at a total income of $104,173 per annum.

The vendor was a Melbourne based investor.  

 

About Teska Carson

Teska Carson, since its establishment in 1990, has consolidated itself as Melbourne’s most progressive and active estate agency, specialising in the field of prime commercial property. Teska Carson recently merged with Kliger Wood to form the largest privately owned commercial agency in Melbourne with a combined 100 years of service to the property industry.

The acquisition has enabled Teska Carson to build on and enhance its reputation as a leader in its field offering the most comprehensive range of commercial property management and agency services with a database second to none. Teska Carson will continue its successful strategy of focusing on personal service and exceeding expectations in delivering outstanding results for our clients. 

 

SOURCE: Press Release

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