OH WHAT A FEELING

A BRAND new industrial office warehouse leased to Toyota in Melbourne’s western suburb of Altona has been purchased by a private investor for $7.2 million. The sale price represents a strong yield of 7.95%, which is arguably one of the sharpest yields achieved in the Melbourne industrial market over the past 12-18 months, according to selling agent Vinci Carbone Property Director Joseph Carbone. Developed by Buildcom, the property at 48-54 Burns Road, Altona comprises an office warehouse of 7,450 sqm on land of 11,350 sqm. The property was specifically built for Toyota Tsusho (Australia) Pty Ltd which holds a 12 year lease which commenced December 2008. The purchaser was represented by David O’Callaghan of O’Callaghan Commercial. Joseph Carbone said this result is testament to the strength of the private investor market and in particular the strong demand for premium quality property assets. “We are finding buyers are prepared to pay a premium for modern well located industrial properties leased to blue chip tenants and offering significant depreciation benefits. It’s not simply a yield based decision. “We cannot find enough of these assets to meet the requirements of our high net worth private clients,” he concluded.