Leyton Funds has spent $5.3 million on a corporate style industrial investment in Adelaide’s Melrose Park.
The group is picking 34-40 Bennet Street up on a net 6.4 per cent yield.
The office/warehouse complex includes 3861 square metres of area split as five tenancies.
It is fully leased – to Axelent, Beacon Lighting, the Benevolent Society, Down Under Textiles and Trading Street – but has a short (2.5 year) Weighted Average Lease Expiry (story continues below).
Leyton is expecting average annual returns of over eight per cent from the LFM Melrose Park Trust it is earmarked for.
JLL’s Hamish Crouch, who marketed the property with Jamie Guerra, said it attracted local, national and offshore buyers, with industrial real estate “proving a sought-after defensive investment option through 2020”.
Melrose Park is about eight kilometres south of the city.