13 Aug 2020
There is plenty of upside for investors to a Geelong warehouse leased to a national supplier of interior design products, soft furnishing textiles and window furnishing products.
The 1.788ha complex at 20 Apparel Close, Breakwater, is leased to Basford Brands on a 10-year lease expiring in 2028.
The property is being offered for sale via an expressions of interest campaign closing August 27.
Darcy Jarman, Geelong West agent Tim Darcy said the long lease offered buyers the chance to grow the investment.
It generates more than $557,000 in rental income a year.
“We think there is going to be good organic growth in the industrial space, given the escalation in demand in the region,” Mr Darcy said.
“So the rent is considered to be at the moment relatively modest. We think there is going to be some good organic growth and upside to the rental in the years to come.”
Mr Darcy said he expected a sale to set a yield around 6 to 7 per cent through the sale.
“It’s very much a rare offering because of the magnitude and scale of the warehouse,” Mr Darcy said.
“Warehouses of this size and scale, as investment grade, items don’t come to the fore very often within our region.
“It is underpinned by a long lease. The tenant has been there for well over 10 years.
“So it’s a long-term lease and it’s a high grade and high quality amenity. It’s excellent in nature in terms of a warehouse amenity.
“It’s got terrific internal high clearance, about 9.6m to the apex internally, supported by an internal office area and associated amenities including substantial on-site car parking.”
The warehouse has 7909sq m of floorspace, including the two-level internal office space.
Built in the 1990s for the Austin Group, Basford Brands now uses the facility as a warehouse depot.