10/05/2013 - Facilities Snapped Up
TWO neighbouring industrial facilities listed to go under the hammer at Geebung in Brisbane’s north have been snapped up in pre-auction deals totalling almost $2 million. The fully tenanted properties at 82 and 86 Basalt St were bought by Queensland private investors for $1.13 million and $795,000, respectively. Lawrence Temple from Raine & Horne Commercial, who negotiated the separate deals, said the offerings attracted a strong level of inquiries. ‘‘About 40 inquiries were fielded from prospective buyers with some looking at both,’’ he said. Mr Temple said the sale prices were considered to be strong, especially with the existing lease terms being two year or less. ‘‘Freestanding investments have become harder and harder to come across so when they do come to market they are usually snapped up pretty quickly,’’ he said. ‘‘These properties were sold by separate owners.’’ Mr Temple said the transactions reflected the fact that investment properties up to $2 million were still highly sought after. The property at 82 Basalt St was bought by a Cairns-based investor only days before it was due to go to auction. It comprises a 968sq m industrial building with a high bay clearspan warehouse, 3-phase power, refurbished offices and façade on a 1012sq m site. The tenant, Enfire Engineering Pty Ltd has been in the building for seven years with two years remaining on its lease. It pays $87,000 plus GST and outgoings, equating to a yield of 7.7 per cent. Next door at 86 Basalt St, the tenant – national printing company CMYK Online – is halfway through its three-year lease and holds a three year option. The property, bought by a Brisbane-based investor, generates a rental return of $65,400 net a year plus GST and outgoings, equating to a yield of 8.2 per cent.