A strategic food processing facility at Morningside has exchanged hands in a $9.1M offmarket deal negotiated by Colliers International. The facility at 17 Breene Place at Morningside was purchased by an offshore investment group in their second industrial acquisition this year.
The 4,548sqm facility was situated on 9,331sqm of land and was purpose built to cater for food production. It was the second time that Colliers International had sold the facility, having been involved in selling the asset on behalf of the current tenant, Priestley’s Gourmet, back in 2006.
Records indicate that the asset was taken to the market via other agencies late last year but failed to find a buyer.
“We saw instant demand for this property from previous campaigns in this asset class” reported selling agent Anthony White. “Food production and storage assets are highly sought in this precinct given recent growth in this industry sector and relatively high barriers to entry”.
The sale reflected an initial yield of 8.5% with just over 4.5 years remaining on the current lease term.
“The underlying fundamentals in Morningside are particularly strong. Increasing land values, improving infrastructure and proximity to the CBD all underpin the value proposition”.
“This sector will continue to provide opportunities with a handful of long WALE investments set to come to the market this quarter”.