Handy Foods pays $13.5 million for Sydney’s Balfour Bakers site

Handy Foods has paid $13.5 million for an industrial site in Milperra, about 24 kilometres west of the Sydney CBD.

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).

Colliers International’s Sean Thompson and Gavin Bishop closed an expressions of interest campaign for the commercial bakery in late July.

Three months ago, Bob Ell’s Leda Group paid Lennox Industrial Inc $52 million for an eight-hectare infill development site in the suburb.

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Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au