Growthpoint Properties has capitalised on the ongoing demand for well leased industrial investment opportunities with a $10,075,000 sale in Brisbane’s Australia Trade Coast precinct.
The two-building facility is situated at 670 MacArthur Avenue Central, on the border of Eagle Farm and Pinkenba.
CBRE’s Edward Bull and Nick Witheriff with Cushman & Wakefield’s Michael Callow negotiated the sale of the investment which houses ASX-listed tenants Coventry-Konnect and Reliance Worldwide.
The deal follows a competitive Expressions of Interest campaign, managed on behalf of Melbourne based Growthpoint Properties Australia.
It was acquired by a Sydney-based fund manager that owns and manages 15 individual properties on behalf of its co-investors.
CBRE’s Senior Director, Queensland Industrial, Edward Bull said the MacArthur Avenue Central sale campaign had presented an opportunity to secure a wholly leased investment within Brisbane’s sought after Australia Trade Coast precinct.
“The property offers a secure income stream and is situated in a precinct that will continue to provide significant capital growth,” Mr Bull said.
“This will be underpinned by infrastructure improvements such as the already commenced Kingsford Smith Drive upgrade, which will increase accessibility to the CBD and provide ease of access to the Gateway Motorway, Brisbane Airport and the Port of Brisbane.”
The MacArthur Avenue Central property consists of two modern buildings totaling 5,577sqm on a corner site of 10,360sqm.
Cushman & Wakefield Industrial Director Michael Callow said that a key attraction for the Sydney-based buyer was the synergy between the transforming inner industrial areas of Sydney and the similarity to that of the Eagle Farm/Pinkenba region, where were more tenants being displaced from the city fringe.
Building One, of 3,328sqm, is leased to Reliance Worldwide Pty Ltd, part of the Reliance Worldwide Group which recently successfully listed on the ASX, while Building Two, of 2,249sqm, is occupied by the ASX listed Coventry Group.
The combined net income is $779,206.67, translating to a sale yield of circa 7.7%.
Mr Witheriff said a draw card for purchasers had been the strong review structure across both tenancies, which allowed for rental increases of 3.5% and 3% per annum respectively.
The property also benefits from ample onsite parking, depreciation benefits and direct access to the Gateway Motorway.
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