A Melbourne-based developer has purchased two adjoining industrial properties at auction in Abbotsford at sub 3 per cent yields as competition for development sites in the inner suburbs intensifies.
The properties – 27 and 29 Duke Street – sold for $1.25 million and $1.205 million on yields of 2.4 per cent and 2.9 per cent respectively, in front of a strong crowd of investors, owner-occupiers and developers.
According to the selling agents, Teska Carson’s Matthew Feld and Larry Takis, several bidders vied for each property after a marketing campaign which drew more than 150 inquiries.
“This was a real one-off sale for a purchaser who had a vision for the potential synergies that both properties could offer together and that was reflected in what were the sort of yields you more often see in the strip retail market and, of late, also in the residential development site market,’’ Mr Feld said.
Located about 200 metres north of Victoria Street, the properties each comprise circa 320-square-metre buildings on 320-square-metre sites with off-street parking. The properties are zoned Industrial 1 under the City of Yarra Planning Scheme.
Mr Takis said 27 Duke Street was leased on a monthly basis at $29,787 per annum net, and 29 Duke Street on an April 2017 expiry at a current net annual rental of $36,774.
“The properties presented investors and owner-occupiers with exceptional opportunities in a suburb which has become increasingly popular with both residential and commercial tenants seeking to take advantage of the fantastic lifestyle and business prospects that such locations offer,’’ he said.