Reece changes hands at 5.1pc yield
Another Reece related deal – this one, the sale of an investment rented to the group in outer west Sydney, has occurred.
At a bulk auction event this week, the Jamisontown property, 65-67 Batt St, fetched $13.25 million – a 5.1 per cent net passing yield.
The ASX-listed occupier had just signed a 10 year lease; with options it can stay until 2064.
Its rental agreement includes annual rent reviews between four per cent, up to five per cent (if directly linked to CPI).
It is also net, meaning the tenant picks up, in this case, council rates, water rates, insurance and land tax.
The incoming owner can also claim depreciation benefits for tax, the 2433 sqm warehouse being recently refurbished (story continues below).
The 4199 sqm holding, which Reece uses as a distribution centre including Reece Plumbing, Fire and Irrigation services, also includes 35 car parks.
Burgess Rawson’s Yosh Mendis and Rhys Parker with PRD were the agents.
The deal comes a fortnight since we reported Reece paid $7.15m for a St Kilda, Melbourne, site, with plans for a showroom and headquarters.
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