Industrial Investment | $5,850,000 | Net Yield: 6.31% | VIC

6 Sinclair Street, Ocean Grove presents a rare opportunity to acquire a 100% leased commercial and industrial freehold investment in the thriving coastal township of Ocean Grove on Victoria's Bellarine Peninsula. This on-market acquisition reflects the calibre of diversified, multi-titled assets Rethink Investing continues to identify for clients seeking exposure to Victoria's high-growth coastal corridors.

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This substantial offering comprises five separate titles with a total building area of approximately 2,025 square metres, sitting on a generous landholding of 3,407 square metres. The property generates a net annual cash flow return of $369,246.42, secured by five established tenants spanning essential services, trade supplies, digital technology and charitable sectors, including Kings Funeral Services, Drysdale Plumbing Supplies, Baker Hughes Digital Solutions and The Salvation Army, delivering excellent income diversification and reduced vacancy risk.

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Zoned Commercial 2, the investment benefits from recoverable outgoings, including land tax on four of the five tenancies, and structured rent reviews ranging from fixed 3% to 3.5% annual increases, ensuring consistent income growth throughout the lease terms. All leases feature three-year terms with options, demonstrating strong tenant commitment to the location, with average tenant tenure of approximately seven years and several tenants exceeding a decade on site.

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Ocean Grove is one of Victoria's fastest-growing coastal communities, situated approximately 25 kilometres southeast of Geelong and 100 kilometres from Melbourne's CBD. The township has evolved into the Bellarine Peninsula's primary commercial and residential hub, with population forecast to grow from approximately 19,500 to more than 24,000 by 2036, supported by significant lifestyle migration, new housing estates and expanding commercial precincts. The property's strategic positioning on Sinclair Street, with frontage to Grubb Road, Sinclair Street and Marine Parade, provides excellent exposure and accessibility for all tenants within a tightly held coastal industrial market recording 0% vacancy for assets of this size.

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With a purchase price of $5,850,000 and total cash required of $2,357,775 (including a 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $369,246.42, a net yield of 6.31%, and a net yield of 5.99% accounting for purchasing costs. Against a cost of loan of $247,162.50, the cash flow after mortgage costs sits at $122,083.92, translating to a return on equity of 5.18% in pure cash flow terms. Accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 17.58%, 22.55% and 29.99% respectively.

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With diversified income across five separate titles, a tightly held coastal market, embedded rental growth, and positioning within one of Victoria's strongest lifestyle migration corridors, this acquisition reflects the calibre of multi-tenanted industrial assets that Rethink Investing continues to secure for clients.

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