St Hilliers has sold two industrial lots in Melbourne’s south eastern suburb of Springvale.
The properties at Westall Road were owned by the St Hilliers Fund No.2 and the sale realised a $4.66 million profit for investors.
The properties are currently occupied by Tyre Marketers and Carba-Tec and sold at auction through Barry Marks and Tony Iuliano of Colliers International – representing a yield of 6.6%, compared to a yield of 8.25% during acquisition of the properties.
St Hilliers Funds Management general manager Nicholas Ridgwell said the eight hectare Westall Road property was secured for the St Hilliers Enhanced Property Fund No.2, which closed fully allocated earlier this year.
“The sales are the first stage of our enhancement strategy for the property and confirmed the site’s potential for subdivision and strong investor demand for well located, income producing, commercial assets,” he added.
St Hilliers Funds Management has already flagged the launch of a third wholesale fund early next year and expects to raise between $70 million and $100 million.
The closing date for this fund is targeted for March 2007. Three seed properties already have been acquired for the fund.
By Kathryn O’Meara
