An international investment group has paid $7 million for an industrial asset in Victoria’s booming regional town of Shepparton, reflecting a sharp yield of 5.89 per cent.

Burgess Rawson’s Beau Coulter and Natalie Couper in conjunction with Rocky Gagliardi of Gagliardi Scott Real Estate sold the property at 73 Old Dookie Road via an Expressions of Interest campaign.

Mr Coulter said the campaign attracted strong interest with the property receiving six offers from local and overseas investors.

Ms Couper said this was an exceptional outcome and underscores the robust demand for quality industrial properties in regional centres like Shepparton.

Boasting a substantial 16,650 square metre freehold landholding and a recent $2 million plus capital upgrade, the landmark sale showcases the enduring appeal of prime industrial real estate in Shepparton.

The property's standout features include a longstanding tenant, Cleanaway, who has occupied the site for 22 years and currently has a twelve-year lease extending to November 2032, with options to 2044.

Cleanaway, an ASX-listed company with a market cap of $5.79 billion and is Australia's largest waste and recycling service provider, operating from over 250 locations nationwide. The property serves as Cleanaway's primary processing and distribution hub in the north-central region, supported by four subsidiary locations.

The property offers a net income of $412,589 per annum with fixed 3% annual rent increases ensuring income growth for the foreseeable future.

The recent $2 million plus capital upgrades have significantly enhanced the property's value, offering substantial depreciation benefits for the new owner. The improvements total 5,786 square metres and include warehouses, a workshop, truck wash facilities, and head office facilities.

Positioned strategically in the heart of Shepparton's premier industrial precinct, the property benefits from easy access to key transportation routes, including the Shepparton Alternate Route and Goulburn Valley bypass, making it prime for distribution purposes.