Melbourne, 16 December 2014 –A yet to be completed industrial facility in Derrimut’s Paramount Estate has sold for approximately $10.9 million to a private investor reflecting an initial yield of 7.25%
The property, located at 105 – 115 Paramount Boulevard, is situated within the well regarded Paramount Industrial Estate. The estate houses a number of recently completed office / warehouse facilities with occupiers including Sleepmaker, CSR, Kuhn and Volkswagen. The site is approximately 17 kilometres west of the Melbourne CBD, and in close proximity to major road networks.
The property is due for completion in May 2015 and will comprise a high quality office and warehouse facility. The building area is approximately15,800sqm occupying a total land area of 25,140sqm.
CBRE’s Rory Hilton, Chris O’Brien and Tom Hayes sold the property after an Expressions of Interest campaign on behalf of Paramount Investments Group Pty Ltd.
The facility is subject to a new five year lease to eStore Logistics Pty Ltd, a market leading provider of third party logistics services including freight forwarding, warehousing, order fulfilment, distribution and inventory management services to both online and traditional businesses. The lease provides an income of $789,200 per annum.
Mr Hilton said; “The low commencing rent position and proposed quality facility created a lot of interest amongst a number of buyer profiles; privates, syndicates and institutions”
Mr Hilton further added that; “This property provided a rare opportunity to acquire a high quality, leased investment offering potential stamp duty savings and depreciation benefits within one of Australia’s premium industrial precincts.”
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.