51-65 WHARF ROAD, PORT MELBOURNE
Posted on 03 July 2009
A brand new industrial office warehouse recently developed by the Salta Group, Port Melbourne, has sold for $7.85 million to a private Melbourne-based buyer, representing a yield of 7.6 per cent which is arguably one of the sharpest yields achieved for an industrial investment in the last 12-18 months. The property comprises an office warehouse of 4,256 sqm on land of 6,303 sqm which has a Business 3 zoning. The property was specifically built for Mercedes Benz Australia/Pacific Pty Ltd which holds a 10 year lease over the property. "This result is testament to the strength of the private investor market and in particular the strong demand for premium quality property assets," added Joseph Carbone, Director of 'Vinci Carbone Property. Yields for blue chip industrial investments are expected to tighten over the next few months as supply is simply way below the level of demand. Sam Tarascio, Managing Director of the vendor, Salta Properties, said "we believe that the yield gap separating A Grade and B Grade industrial investments will tighten over the next few months. Cashed up purchasers are now beginning to factor in key attributes such as strength of lease covenant, quality of construction, location, and reliability of the developer into their decision making, rather than simply a yield-based decision. Demand for these properties far outstrips supply, and we see a gradual improvements in yields for such properties", Mr Tarasco said, Salta will use the proceeds from the sale to commence one of the many projects in its development pipeline.