Brisbane

Major industrial strip has its value unlocked

A Beaudesert Road property has sold off-market on a 6.12% yield – the latest in a string of major transactions totaling $22,475,000 along the tightly-held main road strip.

28 Mar 2018

A Beaudesert Road property has sold off-market on a 6.12% yield – the latest in a string of major transactions totaling $22,475,000 along the tightly-held main road strip. 

891 Beaudesert Road is a 3,734sqm warehouse sitting on an 8,038sqm site area. Also sold in the last ten months by CBRE include;1041-1049 Beaudesert Road on an 8.89% yield (20,783sqm site area, property area 8,138sqm); 901-903 Beaudesert Road on a 7.3% yield (8,797sqm site area, property area 4,325sqm); and 957 Beaudesert Road for $2.9 million (3,020sqm site area, property area 2,350sqm).

A major industrial and logistics hub, Beaudesert Rd Archerfield is located 11 kilometers from the Brisbane CBD. 

CBRE’s Jack Pershouse sold the four properties with a 6.12%-8.89% yield range. All off-market transactions except for 957 Beaudesert Road.

Mr Pershouse commented; “None of the transactions were clean cut investment sales. They all had a twist to them either with vacating tenants, short leases and/or older style improvements. The reason for the off-market success was due to the prominent underlying value in the location, major exposure and the uplift of future infill & value-added income. 

“Generally speaking, properties on Beaudesert Rd don’t trade regularly, so it was great to finally unlock value along the strip,” Mr Pershouse added.

“There is a distinct lack of stock formally marketed in Brisbane industrial, and a large amount of capital looking to be invested in the sector,” according to Edward Bull, Qld Director – Capital Markets Industrial. 

“With a forecast for rental growth in the next two years, investors are desperately looking to get set in quality assets surrounded by established infrastructure.”

CBRE are conducting investor roadshows both nationally and offshore which will only increase the demand for investment grade product according to Mr Bull.

 
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About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), 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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 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.

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Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.