Coburg North industrial asset changes hands for $7.51 million

A tenanted industrial investment property in Coburg North, backed by the strong covenant of Capital SMART Repairs, has been snapped up by a local private investor for $7.51 million.

CBRE brokered the sale of 166-170 Newlands Road with the transaction highlighting the continued appeal of well-located, tenanted assets despite a fluctuating market.

The strategically positioned industrial asset attracted considerable interest during a competitive Expressions of Interest (EOI) campaign, led by CBRE’s Josh Deluca, Matt Romanin, and Jake George.

Mr Deluca said, “The strong interest we received for this property, particularly given the current market conditions, is a testament to the quality of the asset and the strength of Capital SMART Repairs, a reputable operator in the automotive repair sector and majority owned by ASX-listed AMA Group, as a tenant.”

The sale price of $7.51 million reflects an initial yield of 3.97%, significantly below the current market yield of 5.89%. Mr Deluca noted this difference underscores the premium investors are willing to pay for assets with strong tenant covenants and desirable locations.

“While the initial yield is attractive, the relatively short WALE suggests the new owner will need to be proactive in managing the property's future leasing arrangements. The strong interest generated by the EOI campaign indicates that the market remains confident in the long-term prospects of well-positioned, tenanted industrial assets in desirable locations like Coburg North,” Mr Deluca added.