Rutherford Industrial Facility Sold on 8.3% yield

9 April 2021

A 3.7ha industrial facility in Rutherford, NSW (west of Newcastle) has sold on a yield of 8.3%.

The property at 17 Hinkler Ave comprises a 3,860sqm workshop / warehouse and 403sqm office facility leased to NET Modular, a privately owned and operated company specialising in the manufacture of purpose-designed modular buildings. The Group has held contracts with the NSW Department of Education and Public Works for the past 30 years to manufacture, refurbishment, transport, install and removal of portable classrooms across the state.

NET Modular have a 4 year lease with 3 four year options with 3% annual rental increases, generating a net income for the property of $615,000 per annum.

The property was acquired by Saldan Investments Pty Ltd for $7.4M, reflecting an 8.3% passing yield.

The property is split across 3 separate titles with future development potential on the surplus land.

The site is zoned B5 Business and adjoins the Rutherford Homemakers Centre.