An Industrial facility on the NSW Central Coast has sold to a private investor for $10.1m.
The property at 18 Reliance Drive, Tuggerah contains a 6,221sqm industrial facility leased to two tenants generating a net annual income of $682,706. The purchase price represents a passing yield of 6.7%.
The 13,840sqm site was previously acquired in February 2019 for $5.6m by a private development group related to an existing tenant, Leda Securities. At that stage the property comprised a single warehouse of 2,040sqm with a 131m2 of office space and an approval for a further 3,480sqm of warehouse and 550sqm of office space.
The existing tenant Leda Securities, a leading provider of security and anti-terrorism equipment, have occupied the site for 16 years and entered into a new 5 year lease in February 2019 plus option.
The developer completed the construction of Stage 2 in November 2019 and leased the new facility to Hachette, a book publishing and distribution business, on an 8 year lease.
The sale campaign was conducted by Burgess Rawson in conjunction with an adjoining co-owned property at 9 Pioneer Rd.
The Pioneer Rd property consists of a 7,595 sqm building on 14,700 sqm site with 71 car spaces. That property is fully leased to on a new 8 year lease with fixed 3% annual increases generating a net rental of $842,923 pa. The property also sold for an undisclosed price.
The campaign produced 11 offers from a variety of fund managers, syndicators and private investors, representing over $183m in client capital which surpassed agents expectations.
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