Brix flicks industrial investment for a premium
Brix Property Group and Costa Asset Management have sold an east Melbourne industrial investment after three years.
In a deal to settle February, the partnership will reap $17.56 million for 836 Mountain Highway, Bayswater.
Up Property is the buyer.
The property is subject to a long-term lease.
The result reflects a 7.2 per cent yield at settlement.
CAM ls led by Robert Costa
Up ups portfolio
Brix and CAM paid $7.7m for 836 Mountain Hwy with a short leaseback to ASDAM subsidiary, Rosebank Engineering (story continues below).
On 1.87 hectares zoned Industrial 1, with an 8457 sqm warehouse covering just 45pc, that group recently renewed its rental agreement until January, 2036.
“Brix originally purchased the site with the intent to redevelop…following the end of the lease term, but when Rosebank Engineering sought a 10 year lease extension, Brix made the decision to sell the property and recycle the capital into our other new acquisitions in Queensland and Victoria,” Brix managing director, Adam Brick, said.
Six projects are under construction, he added.
“We are pleased to see Up Property take stewardship of this asset given Up’s high level of experience in acquiring, managing and ultimately repositioning key industrial, commercial and residential assets,” according to the executive.
Dawkins Occhiuto’s Walter Occhiuto and Andrew Dawkins with JLL’s Stephen Adgemis and Joel Scully closed an expressions of interest campaign for 836 Mountain Hwy in August.
Bayswater is 33 kilometres from the CBD.
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