Reservoir industrial asset changes hands for $7.5 million

A private investor has acquired a land-rich tenanted industrial asset in the Melbourne suburb of Reservoir for $7.5 million, reflecting a passing yield of 5.06% and an equivalent market yield of 7.54%.

CBRE’s Josh Deluca, Daniel Eramo, Jake George and Charlie Betts managed the transaction of the 5,141sqm manufacturing facility located at 297-301 Edwardes Street.

The asset attracted significant interest during the competitive on-market Expressions of Interest campaign, highlighting the continued strength and depth of the Victorian middle-markets investments space.

The 8,975sqm site has a long-standing tenant, with an upcoming lease expiry and a further five-year term available, providing a solid foundation for future returns.

Mr Deluca said the buyer recognised the long-term potential of the property with the opportunity to increase the assets value through near-term rental reversion and future development strategies.

“This transaction underscores the market’s appetite for value-add investment opportunities, with investors actively seeking assets with strong fundamentals and potential for growth to enhance their portfolios,” he added.