Leading Western Australian investor and developer Lester Group has secured its first syndication deal in Queensland with the purchase of a purpose-built cold storage asset in Lytton, Brisbane, for $11.15 million.
Located at 108 Freight Street, the property features 2,263sqm of freezer and cold room facilities and 220sqm of two-storey office accommodation on a total land area of 8,820sqm.
The property is leased to ASX listed AHG (AHE) subsidiary JAT Refrigerated Road Services and was sold on a yield of 7.45%. It is situated just 11 kilometres east of the Brisbane CBD in the tightly held Port Brisbane precinct.
CBRE’s Ed Bull and Pete Turnbull negotiated the transaction on behalf of a private owner.
Mr Bull said: “The low vacancy rate for cold storage facilities in Brisbane and nationally has been driving interest in this asset class. Lytton has also become one of the most highly sought after industrial precincts in Queensland, for both buyers and tenants, and as a result we have witnessed a number of strong deals in the area transacted off market.”
Lester Group Director Russell Lester said: “This strategically located purpose built cold store stood out to us because of its location, the growing demand for quality refrigerated food storage, and security of income. The quick take up by our investors vindicated our decision to acquire this property.”
”Right now, the east coast appears to offer some prime opportunities but with every market fluctuation comes opportunity, so Perth is still firmly in our sights.”
The sale marks the fifth interstate purchase in four years for the Perth-based property group adding to an already impressive eastern states property portfolio of close to $100 million. Outside of its syndication activities, Lester Group holds a diverse portfolio of commercial properties with a total value in excess of $150 million.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.