Asset manager sells Melbourne tyre recycler
Harmony Property Investments has sold a 5.3 hectare tyre recycling facility in Melbourne’s north for $13.55 million.
The deal for the TyreCycle factory at 30-56 Encore Avenue, Somerton, reflects a 5.76 per cent net passing yield.
Nearly half the site, abutting Merri Creek, is grassland.
The balance is hardstand with only a small improvement, including modernised offices.
All up – buildings cover just 10 per cent of the Industrial 1 zoned block, according Cushman & Wakefield’s Chris Jones, Adrian Rowse and Charlie Holmes, who closed an expressions of interest campaign May.
TyreCycle, which has occupied over a decade, has 10 years left on its lease, they added.
Harmony paid $7.9m in 2015.
The buyer is an interstate private investor.
“Strategically located adjacent to the Hume Highway and the forthcoming Melbourne Intermodal Terminal, the asset is underpinned by the area’s strong long-term growth prospects and relative affordability compared to other industrial sub-markets,” the agents said.
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