ABBOTSFORD INDUSTRIAL INVESTMENTS SOLD ABOVE RESERVE

TWO industrial investment properties in Melbourne’s city fringe suburb of Abbotsford have been sold under the hammer, above the reserve price. The properties were sold by auction which was conducted by Vinci Carbone Property. The vendor, Grosvenor St Industrial Pty Ltd is associated with Lascorp Development Group and the Herzog Group of Companies. Director Joseph Carbone said there were over 100 enquiries mostly from cashed up Melbourne based buyers, and the properties were sold in one of the sharpest yields achieved for industrial investments over the last 12-18 months. The first property at 28 Grosvenor St Abbotsford, comprised a part two level office and warehouse building leased to Coffee Supreme Pty Ltd for eight years expiring in December 2015, returning $62,646 per annum plus outgoings. The land area is 563 sqm. Strong bidding from five potential buyers saw the property sold for $1,230,000 representing a record yield of 5.09%. The second property at 17 Flockhart St Abbotsford, is a single level warehouse building leased to COI Building Group Pty Ltd for eight years expiring February 2016, returning $70,362 per annum plus outgoings. The land area is 836 sqm. Joseph Carbone said strong bidding saw the property sold for $1,305,000 representing a record yield of 5.39%. “Both of these results exceeded the vendor’s reserve price expectations". “This result is testament to the strength of the private investor market and in particular the strong demand for premium quality property assets located within the city fringe of Melbourne,” Joseph Carbone said.