APN Industria REIT buys Kilsyth industrial investment

An investment grade industrial property in Kilsyth, about 36 kilometres east of the Melbourne CBD, has sold for $9.5 million to APN Industria REIT.

The 2.3 hectare site at 147-153 Canterbury Road is leased to B&D Australia, a subsidiary of Dulux which is at present the subject of a takeover bid from Japan rival, Nippon.

B&D Australia has a lease at Kilsyth expiring in 2021, with renewal options.

The industrial property contains a 1000 square metre office.

Despite this, the marketing agents promoted the property to land bankers, as well as investors.

The parcel contains 11,882 square metres of buildings, including a 1000 sqm office. It also offers a 1971 sqm loading dock, covered by a canopy, and large open air car park.

B&D Australia is paying rent of $59 per sqm, per annum for the space (which equates to about $701,038 per year).

A canopy recently covered 1971 square metres of loading area at the back of the block.

On those numbers, the Kilsyth asset is trading on a passing yield of 7.4 per cent.

JLL’s David Kelly, Simon Wellock and Adrian Rowse along with KBL Commercial’s Michael Lewin marketed 147-153 Canterbury Road.

The 2.2 hectare site contains more than 10,000 square metres of warehousing.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.