A new office/warehouse in Bayswater, in Melbourne’s east, has sold for $4.5 million.
The sale price of 865 Mountain Highway reflects a building sale rate of $2200 per square metre.
Offered with a five year lease (with options) to a local company that is consolidating from two sites in neighbouring suburbs, the 2038 square metre building returns annual rent of $256,000 per annum.
On that basis, it is selling on a passing yield of 5.68 per cent.
The site spreads 3203 sqm opposite Mitre 10 Bayswater, about a kilometre from the Bayswater train station.
“The firming of yields and sale rates coupled with the increase in enquiry are evidenced through CVA transactions over the past two months and there is a clearly defined level of confidence in the commercial market,” Mr Angelico said of the deal.