Quintessential Equity has sold a 2.4 hectare industrial investment in Melbourne’s Noble Park North for $14.7 million.
The commercial investor and developer, which provides syndicate opportunities for wholesale buyers, paid $6.8 million for 180 Browns Road in 2013.
OneSteel Reinforcing, now known as Infrabuild, is the long-term occupier.
About 27 kilometres south east of the city, near Dandenong, a major industrial employment zone, the property includes 9552 square metre of gross floor area inclusive of a 546 sqm office.
Quintessential Equity listed 180 Browns Road with a 10-year-plus lease to Infrabuild, a fully owned subsidiary of Gupta Family Group (GFC) Alliance Australia.
Based on the annual rental return ($844,487), 180 Browns Road is trading on a 5.74 per cent yield.
Interestingly, the asset gives the new owner a 4000 sqm vacant tract of land which could be replaced longer term with another industrial investment, or subdivided and sold off.
Infrabuild extended its facility in 2016 before renewing its lease.
Quintessential Equity chief executive officer Russell Bullen said the location “in one of Melbourne’s premier industrial areas”, along with that tenant commitment, resulted in the property being well received.
“The combination of location and its new long-term lease meant that the property generated significant interest from investors,” Mr Bullen said.
“Developing meaningful relationships with our tenants helps ensure their occupancy needs can be met well into the future.
“As our first settlement of 2020, Quintessential Equity is looking forward to another strong year as we expand our portfolio in Victoria and interstate.”
Quintessential Equity getting around Victoria
A month prior to listing 180 Browns Road, Quintessential Equity was appointed by the City of Greater Geelong to develop a landmark $200 million mixed use complex which will contain a new council headquarters.
Quintessential Equity was also last October announced as one of four parties shortlisted by the Andrews government to joint venture on a $290 million urban renewal project affecting five major development sites across two hectares of land in central Dandenong.
The state government is seeking to from 2023 build offices, apartments, student accommodation, retail, function facilities and social infrastructure.
Competing for the contract is Capital Alliance Group, Brady Group and MAB Corporation.