Infrastructure construction giant McConnell Dowell – a subsidiary of Aveng, which is listed on the Johannesburg Stock Exchange – has banked $7.35 million selling a factory in Melbourne’s west.
At 13-15 Cherry Lane, Laverton North, the 1.42 hectare site with a 2570 square metre 11-year old warehouse, was offered with a leaseback until 2030.
Based on the starting annual rent ($360,000) the deal is being struck on a 4.9 per cent yield.
The agents’ expressions of interest campaign closed a week earlier, on March 18.
Eight offers were received.
“The yield…demonstrates the ongoing strong demand for industrial and logistics investment product,” Mr Holmes added.
“We believe given the current economic conditions there is still high demand for secure investment assets, particularly such as this one, providing a 10 year initial [lease] term on a triple net basis to a multinational company”.
With 140 metres of frontage to the busy Princes Freeway, 13-15 Cherry Lane is passed by about 166,000 vehicles daily.
Laverton North is about 18 kilometres from the CBD.