Meaty Result For City Fringe Warehouse

Posted on 14th December 2021

52 Lennox Street Richmond 52 36

A meaty result for a versatile city fringe warehouse has demonstrated the ongoing attraction of warehouse assets across the investment spectrum.

Fitzroys’ Chris Kombi and Ervin Niyaz sold 52 Lennox Street, Richmond for $2.25 million after a successful auction campaign, to a local investor at a tight 3.7% yield.

More than 85 enquiries were received during the campaign.

The property comprises a 330sqm flexible brick warehouse leased to Hagen’s Organic Butcher and is currently used as a food processing facility, and is on a 352sqm Commercial 1-zoned site.

The building includes four cool rooms, a freezer, and grease trap, and an office.

“Food processing facilities with cold storage have emerged as prized assets, given the significant lack of stock available to the market nationally during a boom period of for the e-commerce, food and grocery sectors,” Kombi said.

“Industrial investments during the COVID period have been immensely popular across the board, from smaller warehouses to institutional-grade assets.”

Niyaz said the underlying land value also was a major attraction given the Richmond site’s future-proof location.

“Investors and land bankers were keen to secure a flexibly-zoned asset, generating income from a quality tenant, in a suburb that has become one of Melbourne’s most vibrant hubs for employment, retail and hospitality, with a sizeable commercial and residential development pipeline,” he said.

The property is within walking distance to retail and hospitality precincts including major Melbourne shopping strips Victoria Street, Church Street and Bridge Road.