A Spotswood coach depot once owned by AAT Kings Tours has sold for $6.4 million reflecting a low 1.99 per cent yield.
The 4792 square metre Industrial 3 zoned holding with a 1256 sqm office/warehouse at 176 Hall Street was offloaded this time around by Tracon Properties, which paid AAT $1.3m in 2007.
Melbourne Coaches is the current occupier – if it exercises a five year option, it can stay until 2029.
Given the location, opposite Spotswood train station, there could be an argument for a rezoning to allow for residential use after that.
MP Burke’s Pat Burke with CVA’s John Nockles represented Tracon.
“CVA Property Consultants and MP Burke were not surprised as the level of interest in the site over the campaign with over 90 enquiries and 13 parties submitting offers during the expressions of interest process,” Mr Nockles said (story continues below).
“This result marks yet another uplift in land values for that area,” he added.
Spotswood is about nine kilometres south west of Melbourne.
Earlier this week we reported that an institutional grade industrial investment at Sydney’s Prestons sold for $58.255m reflecting a 3.35pc yield, believed to be the lowest for an asset of this type.
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