Epping industrial site sale sets yield record

A private investor has purchased an Epping industrial warehouse for $8,940,000, reflecting a record yield of 4.25%, despite recent interest rate rises.

The 3,970sqm facility at 67 Gateway Boulevard is fully leased to Automatic Heating Global, a nationwide solutions provider for water-based heating, cooling and energy systems in building services.

CBRE’s Joe Brzezek and Daniel Eramo brokered the deal on behalf of a local vendor looking to re-weight capital into alternative investments.

“We estimate considerable rental uplift for the property at the expiry, given the recent growth in Epping over the past 12 months. Long established industrial leases are now under current market rent and tenants should expect significant rental increases at renewal.” Mr Brzezek said.

Mr Eramo added, “There is still high demand for industrial assets with a flight to quality from purchasers who are still willing to pay premiums for prime grade assets with strong fundamentals and this sale reflects that.”