Super fund buys industrial property in Victoria's Sunshine West

A self-managed super fund (SMSF) has bought an industrial property in Victoria's Sunshine West for $2.72 million for a yield of 7.7%. 

The 570-572 Somerville Road property was sold subject to a new four-year lease to Schenck Process Pty Ltd, at a current rental of $215,000 per annum net.

Schenck Process is a multinational company that makes equipment for industrial weighing, feeding, measuring, conveying, filtration and automation.

The sale was brokered by Savills Australia industrial directors Chris Jones and Ben Hegerty with Brigitte Bennett.

The property comprises a 2,451 square metre facility, including a refurbished 379 square metre office and a 2,072 square metre, high clearance, warehouse with a loading canopy.

The 0.44 hectare site includes a frontage to Somerville Road.

Jones said the securely let property with its new four-year lease, strong annual review mechanism and modern versatile improvements was an ideal SMSF opportunity.

"This property provided the sort of security and peace of mind that goes with a well-tenanted, well-located and relatively maintenance free property, a package likely to deliver sound growth prospects and that’s just what you want to put into your super fund,’’ Jones said.

The vendor was a Melbourne-based private investor.