Adelaide based commercial property syndicator, Harmony Property Syndication, has paid $10.75 million on a yield of 7.1 percent for a substantial industrial property at Hallam in Melbourne's south-east in a deal brokered by Savills Australia.

According to Savills Industrial Directors, Chris Jonesand Ben Hegerty, the 1-5 Siddons Way property was sold subject to a long term lease, expiring in 2026, to national tenant Pakcentre Marketing Services, at a current rental of $765,920 per annum net.

The property comprises a 9,574 square metre office and warehouse facility, with nine metres clearance and canopied loading docks, on a 15,300 square metre allotment.

Mr. Jones said the price reflected the tightly held market and the lack of stock in the price range.

'The sale produced both a strong result for the vendor and a fantastic investment opportunity for the purchaser with a very solid lease profile in a well-regarded location.

'This is a tightly held sector of the market with not a lot of opportunities and the price reflects that,' Mr Jones said.

Mr Hegerty said the property had attracted a high level of enquiry from local, interstate and off-shore investors looking for attractive yields, secure lease profiles, prime locations and potential upside.

'We have sold properties totaling more than $300 million over the last eight months driven by strong fundamentals and a lack of alternative assets capable of delivering comparable yields and investment security,' Mr. Jones said.

He said the demand continued to put yields under pressure with many recent sales pushing the 7 percent barrier.

The vendor was a private group of interstate investors.

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