Bayer lease prompts healthy investment sale in Northgate
The lease of a brand new industrial unit in Northgate to Bayer Pharmaceuticals has prompted the off-market acquisition of the same property for $1.525 million.
19 Oct 2018
CBRE successfully leased and sold Unit 2 at Lot 18/62 Crockford Street, after the recent completion of the new 1,300sqm duplex facility.
Bayer Pharmaceuticals signed a three-year lease, with an additional three-year option, over the 650sqm unit at a net rental of $97,500 per annum net.
Following Bayer’s lease, Unit 2 was then quickly snapped up off market by a private investor sourced through CBRE’s database, with the final sale price reflecting a sharp 6.39% yield.
CBRE’s Dan Munnich, who jointly marketed the project with Ray White’s Aaron Aleckson and Andrew Doyle on behalf of Sueby Pty Ltd, said the transaction highlighted the strength of investor demand for high-quality industrial facilities underpinned by top-tier covenants.
“The buyer was attracted to the quality of the tenant covenant. As it is a brand-new premise, the investment offers significant tax depreciation benefits,” Mr Munnich said.
“The industrial investment market is extremely competitive, particularly at this price point - good quality buildings with a brand-new lease term are hard to come by,” Mr Doyle said.
Unit 2 occupies a 50% of the 2,000sqm site and comprises 650sqm of office-warehouse space. Other features of the property include three phase power, substantial car parking, and a truck turning and container set down area.
The marketing agents also transacted Unit 1, which similarly offers 650sqm GFA and sold to owner occupier E.C.D, a specialist in the design, manufacture and supply of electrical cable management solutions, prior to practical completion.
“The owner occupier market in this size range has become quite competitive, with an under supply of quality vacant buildings. Ray White identified E.C.D. as a purchaser after contacting them through direct marketing earlier in the year. The director had been looking for a number of months and immediately made an offer after the first inspection,” Mr Aleckson added.
CBRE and Ray White negotiated the initial sale of the development site to Sueby Pty Ltd in 2016.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at https://www.cbre.com.