A strata industrial investment with an excellent tenancy covenant and located in a prime south eastern location has been sold under the hammer for $2.014 million.

Private investors traded the property, B12 & B13, 2A Westall Road in Springvale, which was sold through Fitzroys’ Brent Glassford, Marco Sandrin and Lewis Waddell in conjunction with Patrick O’Callaghan of O & Co.

The combined property totals 586sqm of floor space, 490sqm of which is occupied by Ambulance Victoria on a secure 7+7-year lease term from April 2020 with 7 car spaces.

The balance is leased to Promotional Clothing on a 2+2-year term from August 2022 and includes 2 car spaces.

The sale price reflected a strong 5.25% yield for a strata-titled office warehouse.

Glassford said the property was well-received by investors, with multiple bidders on auction day and the property selling above reserve.

“We anticipated strong interest in this property given it has a great essential services tenancy covenant, being leased to Ambulance Victoria, and its superb prime south eastern location.

The site is at the corner of Westall Road and Centre Road, just moments from the Princes Highway and Springvale Road,” he said.

Sandrin said the site offered both security of income from the long Ambulance Victoria lease as well as excellent rental prospects and growth potential in the coming years.

“Fitzroys is forecasting further rental growth in Melbourne’s south eastern industrial market amid historically low vacancies, with overwhelming demand for high-quality facilities in well-connected locations to cater to higher inventory and storage space demands and last-mile efficiencies,” Sandrin said.