MAIR Property Funds in Second Vic Acquisition

Western Australia based MAIR Property Funds Limited has acquired its second property in Victoria this year with the circa $6 million purchase of an office/showroom and warehouse complex at Lynbrook in Melbourne’s south-east in a deal brokered by Savills Australia with Facey Industrial.   

According to selling agents, Savills Industrial Directors, Chris Jones and Ben Hegerty, the 42 Northey Road, corner Western Port Highway, property was sold on an 8.2 percent yield and is subject to leases to high profile tenants, Austral Bricks and One Steel.  

Located within the Lyndhurst Business Park, the property comprises a 3,393 square metre (GLA) office/showroom and office/warehouse complex constructed in 2007/8 on a single title, 12,570 square metre site, with three street frontages totalling 325 metres, hardstand, security fencing, landscaping, and 78 marked on-site car spaces.

Mr Jones said the property was sold subject to secure ten year leases to Austral Bricks and One Steel at a combined $491,876 per annum net, with options to extend to 2023.

He said the property had attracted considerable enquiry based on its impeccable investment credentials including frontage to Western Port Highway, long leases to high profile tenants and modern functional improvements.

“This property proved very attractive as a syndication vehicle given its excellent growth prospects in one of Melbourne’s major growth corridors and industrial precincts,” Mr Jones said.  

Mr Hegerty said the sale provided an opportunity to capitalise on the lack of good quality industrial investments within the tightly held, south-eastern market.

He said the potential to subdivide (STCA) the two buildings on separate titles and ongoing depreciation benefits were additional considerations.

The deal brings to more than $300 million in industrial investment sales concluded by Mr Jones and Mr Hegerty in Melbourne this year.

The vendor was a Melbourne based private investor.