Adelaide syndicate pays $10.75 million for Hallam property through Savills

Adelaide-based Harmony Property Syndication has paid $10.75 million on a yield of 7.1% for an industrial property at Hallam in Melbourne’s southeast.

The 1-5 Siddons Way property was sold subject to a long-term lease, expiring in 2026, to national tenant Pakcentre Marketing Services, at a current rental of $765,920 per annum net.

It comprises a 9,574 square metre office and warehouse, with nine metres clearance and canopied loading docks, on a 15,300 square metre allotment.

The sale was through Savills Australia's Chris Jones and Ben Hegerty.

Jones said the price reflected the tightly held market and the lack of stock in the price range.

Hegerty said the property attracted a high level of enquiry from local, interstate and off-shore investors looking for attractive yields, secure lease profiles, prime locations and potential

upside. He said the demand continued to put yields under pressure with many recent sales pushing the 7 percent barrier.

The vendor was a private group of interstate investors.

Established in 2003, Harmony specialises in establishing and managing commercial real estate syndicates on behalf of investors. Harmony currently has 21 separate property investment syndicates with a combined value of more than $260 million of funds under management.