Savills : Springvale Rd Property Sells for $5.4m on 6.4% Yield

A Melbourne based investor has paid $5.4 million on a tight 6.4 percent yield for a multi-tenanted industrial property at Mulgrave in Melbourne's south-east in a deal brokered by Savills Associate Director Daniel Kelly.

Mr Kelly said the purchaser had made an unconditional offer for the 752-752 A Springvale Road and 77-79 Glenvale Crescent property, prior to the close of the Expressions of Interest campaign in a market with a limited supply of similar properties.

'Opportunities to purchase properties like this, on a main road corner with significant development upside and income, are few and far between and the response to the EOI campaign reflected that,' Mr Kelly said.

Part of the 7.4 hectare Enterprise Park, the property comprises 4,333 square metres of building area, leased to three separate tenants on two to four year terms, returning a combined $347,658 per annum.

Mr Kelly said the high profile 8,590 square metre site, zoned Special Use Zone 6, offered multiple development options, including multi-level office and showroom, subject to council approval.

He said the vendor, Marks Henderson, was very happy with the result which was the group's last property holding within the Enterprise Park development it purchased from the ING Industrial Trust in 2002.

Learn more about Savills Industrial services.