High interest in prime warehouse investment

Published on: 11 September 2020

An industrial facility leased to a major Hino Trucks dealer is attracting high interest in industrial assets when it is put up for auction next month.

The property at Breakwater, south of the Geelong CBD, features a freestanding 1931sqm warehouse on a strategic 3787sqm site in a major industrial precinct and growth zone.

Occupied by award-winning tenant Till Hino Sales and Service, it features a secure, renewed net lease to July 2024, plus options, and returns an estimated annual net rent of $187,057, with sought-after fixed, compounding 3.5% annual rent increases.

The property at 13-17 Industrial Place will be put on the block at Burgess Rawson’s Investment Portfolio Auction on Wednesday, September 23.

Burgess Rawson director Billy Holderhead said the light truck industry was one of the success stories to come out of the COVID-19 pandemic, with an increase in online shopping driving demand for more transport vehicles, and underpinning the commercial properties where they are sold, stored and serviced.

“Industrial has been the most searched-for and sought-after asset class among investors throughout the pandemic, driven in large part by the growth of e-commerce,” Mr Holderhead said. “Interest in the industrial sector is at an all-time high and vacancy rates are at a record low.

“For buyers who have been considering how they can be more defensive with their investments, industrial properties such as this one certainly ticks that box.”

Highlighting the demand in the light truck sector, as well as the strength of the tenant, Hino in June broke its record number of monthly sales.

The Breakwater property is in arguably one of the most prestigious industrial precincts in the Geelong region. With more than 100 new office warehouses or factory units just completed or under construction within 750 metres, plus Bunnings Trade and Mainfreight in close proximity, the location offers convenience and excellent connections to the CBD.
The surrounding region is also experiencing significant growth, with the Marshall area’s population anticipated to grow by more than 400 per cent over the next 20 years.

“There is a huge amount of new development occurring in the area and thousands of new jobs being created, and this property is right in the middle of it,” Mr Holderhead said.

Burgess Rawson’s Investment Portfolio Auction event will he held at 11am AEST on Wednesday, September 23.


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