The 1.8 hectare holding at 312 Horsley Road includes a 7917 square metre office-warehouse (pictured top and left) leased to Balfour Bakers which pays annual rent of $721,325.
On that basis the asset is trading on a passing yield of 5.3 per cent.
The property was marketed to investors – the tenant has “heavily invested” in the building it has occupied for more than 15 years – and may extend its lease. The rental rate achieved for the property at present ($90 psm/pa) is considered under-market.
Owner occupiers were also targeted, the property having a 1.5 year Weighted Average Lease Expiry (WALE).
Three months ago, Bob Ell’s Leda Group paid Lennox Industrial Inc $52 million for an eight-hectare infill development site in the suburb.