CBRE Tim Homes, Lachlan Ferguson and Ned Murphy have sold  6 Capital Drive $710,000 above reserve when ten bidders pushed the sale yield for a Dandenong South manufacturing facility to a low 4.26% amid strong ongoing demand for industrial investment opportunities.

CBRE’s Tim Homes, Lachlan Ferguson and Ned Murphy steered the auction of the 6 Capital Drive property, which the property going under the hammer for $3.21 million - $710,000 above the reserve price.

While auctions for industrial facilities are not commonplace in Melbourne, CBRE’s Mr Homes said the strong result was expected to result in more auction campaigns to leverage current buyer demand.

“Historically low interest rates, coupled with the resilience of Melbourne’s industrial sector during the pandemic period, has resulted in pent-up demand for well located, securely leased investment assets,” Mr Homes said.

“This is driving local and interstate competition for available assets, with 56 bids registered for 6 Capital Drive – resulting in a significantly stronger than expected sale price.”

The Dandenong South property offers a new five-year lease to long-standing tenant Windsor Engineering Group Pty Ltd, trading as Crossle Coils.

The company, which is the oldest heat exchanger manufacturer in Australia, has operated at 6 Capital Drive for approximately 40 years.

The 2,559sqm site features a clear span warehouse and recently refurbished office with a total building area of 1,649sqm.

To request a sales analysis please email either of the CBRE selling agents via the below contact forms.