Investor Pays $4m for Noble Park Industrial

A Melbourne based private investor has paid $4 million on a yield of 9 percent for a securely leased office and warehouse property at Noble Park in Melbourne’s south-east.

According to Savills Australia’s Kosta Filinis and Paul Jones who brokered the deal for Prudent Properties, the property was sold subject to a lease to E-Pak Packaging Pty Ltd at a rental of $360,000 per annum.

Located in a sought after and well established industrial/commercial precinct, the 428-430 Princes Highway property comprises a 4,805 square metre building, including a 550 square metre office component over two levels and a 4,255 square metre warehouse. The 8,984 square metre site includes 2,500 square metres of hardstand.

Mr Filinis said the price reflected both the dearth of similar investment properties on the market and the demand for redevelopment opportunities, which has almost exhausted supply in neighboring suburbs.

“Neighboring suburbs have seen continuous pressure to redevelop traditional warehousing into hi-tech uses and that pressure is now flowing into Noble Park and driving increased demand in what is already a tight market for properties offering suitable land size and location,” Mr Filinis said.

Mr Jones said the property had attracted a high level of enquiry from local, interstate and foreign buyers looking for securely leased properties in the best locations.

“The property was well let and provided excellent access to both EastLink and the Monash Freeway in one of Melbourne’s key industrial zones,” Mr Jones said.