A private investor has purchased a substantial warehouse-office property in Melbourne?s south eastern suburb of Dingley for $4.71 million, on a yield of 7.9%.
Located at 17-23 Redwood Drive, Dingley, the property was previously owner-occupied by Hinkler Books who have relocated to a larger property.
Following the relocation of the owner, the property was immediately snapped by new tenant Dynamic Direct Pty Ltd, a 20-year established specialist mailing and printing house.
Dynamic Direct has signed a five years and three months lease commencing from February 01, 2007.
Rental payments commence from June 01, start at $375,000 per annum plus GST and outgoings. There is provision for annual rental increases at the rate of 4% and the tenant also holds a further five year option to renew the lease.
In addition, the lease is subject to guarantees by two directors and supported by an $80,000 security deposit.
The building was for sale or lease via conjunctional agents Crabtrees Real Estate and Kevin Nixon Real Estate.
A new lease was negotiated by Crabtrees Real Estate agent James Taylor for the 6,091 sqm warehouse building (plus extensive canopies not included in the measurement) including 470 sqm of administration space.
Taylor said the new tenant Dynamic Direct recently sold their Cheltenham premises and needed these larger facilities.
The property sits on a corner site of 10,970 sqm and also offers 60 car parking spaces.
Australian Property Journal
