High yield, long lease among upside at Geelong warehouse

There is plenty of upside for investors to a Geeloong warehouse leased to a national supplier of interior design products, soft furnishing textiles and window furnishing products.

The 1.788ha complex at 20 Apparel Close, Breakwater, is leased to Basford Brands on a 10-year lease expiring in 2028.

The property is being offered for sale via an expressions of interest campaign closing August 27.

Darcy Jarman, Geelong West agent Tim Darcy says the long lease offers buyers the chance to grow the investment.

It generates more than $557,000 in rental income a year.

Long tenant: Basford Brands has options to lease the warehouse until 2048.

“We think there is going to be good organic growth in the industrial space, given the escalation in demand in the region,” Darcy says.

“So the rent is considered to be at the moment relatively modest. We think there is going to be some good organic growth and upside to the rental in the years to come.”

Darcy says he expects a sale to set a yield around 6 to 7% through the sale.

“It’s very much a rare offering because of the magnitude and scale of the warehouse,” Darcy says.

“Warehouses of this size and scale, as investment grade, items don’t come to the fore very often within our region.

High yield: Basford Brands’ lease at 20 Apparel Close, Breakwater, has options until 2048.

“It is underpinned by a long lease. The tenant has been there for well over 10 years.

“So it’s a long-term lease and it’s a high grade and high quality amenity. It’s excellent in nature in terms of a warehouse amenity.