Bright investment in Morningside
Large landholdings in strategically-located Morningside are tightly held by a collection of owners, elevating the value of emerging opportunities, Bayleys salespeople say.
Bayleys City and Fringe team director Alan Haydock says the suburb has transcended its light industrial roots to become an attractive precinct for investors and tenants.
With colleague Damien Bullick, Haydock is marketing a tenanted corner opportunity at 6-8 Taylors Rd and 2-4 Gordon Rd. The properties are offered for sale individually or together by tender closing at 4pm, Tuesday December 5, unless sold prior.
“The properties benefit from Business– Mixed Use zoning, which allows for intensive and diverse development options up to 18m height. The incoming government has pledged to strengthen rules that enable mixed-use development and intensify transport corridors through additional density, which should continue to enhance the location, underpinning competitive demand dynamics for investors and developers.”
Two refurbished industrial-style buildings on 2554sq m of freehold land present a significant opportunity to purchase a cityfringe land parcel in three titles, with strong tenant covenants. The stand-alone buildings are fully occupied, returning a
combined net annual rent of $526,997 plus outgoings and GST.
Commercial lighting and fit-out specialists Novii occupy the 977sq m premises at
6-8 Taylors Rd with a six-year lease to October 2028, generating net annual income of circa $270,910 plus GST.
High-end lighting and furniture retailer ECC has a five-year lease to September
2027, plus one five-year renewal right for the 999sq m tenancy at 2-4 Gordon Rd. The lease returns a net annual income of around $226,120 plus GST.
Lease provisions include fixed rental growth and a landlord-friendly lease structure
allowing for long-term investment and development potential.
Bullick says the property’s configuration supports independent tenancies and provides a split-risk opportunity for future leasing, with scope for development.
“As well as being a desirable passive investment proposition, one of the key value fundamentals of this underdeveloped site is its future development potential,” he says. “The scale, underlying mixed-use zoning and north-facing corner position allow for high-density residential, commercial or mixed-use development.”