Time to ‘ set and forget’
A MAJOR industrial asset with a blue chip tenant will go to auction in Melbourne with hopes it will appeal to southern investors.
The property at 720 Ingham Rd, Mount Louisa is 7948sq m and is leased by Penske Power Systems which is listed on the New York Stock Exchange.
The automotive group has a 10- year lease until 2023 plus options to 2033 bringing in a net income of $ 338,408 a year plus GST.
It will be auctioned on October 24 at the Burgess Rawson Flagship Portfolio Auction at the Crown Casino in Melbourne.
Burgess Rawson director and selling agent Glenn Conridge said the high yielding property would be a ‘ set and forget’ investment.
“Penske Power Systems is fully owned by the international transportation services company Penske Automotive Group, capitalised at approximately $ 26 billion and employing more than 26,000 people worldwide — an investment such as this would be a fantastic addition to any portfolio,” he said.
“The site itself lies just 7km west of Townsville’s CBD on a highly exposed prominent main road corner block with 88 metres of street frontage, featuring ample on- site carparking and over 700sq m of office space.
“Achieving a net income of $ 338,408 pa plus GST, the tenant pays all the outgoings as per the lease agreement and there are minimum 2 per cent rent increases in place each year, meaning you can sit back and enjoy the healthy net profits while benefiting from substantial depreciation allowances.”
The property listing follows Burgess Rawson selling a fast- food investment in Mount Louisa for $ 8 million earlier this year at auction in Melbourne.
For more information call Glenn Conridge on 0413 873 337.