11/10/2013 - Private Investor At Strathpine Crossroads
A BRISBANE private investor has done a deal at the crossroads — an office/retail asset called the Crossroads north of Brisbane, that is.
The two-level complex on a 5492sqmsite at 454-458 Gympie Rd was snapped up under the hammer for $5.94 million. It comprises a net lettable area of 1892sq m, including five ground-floor tenancies occupied by retail/food users, and ground and first-floor office users.
The asset’s long-standing anchor tenant is the State Government’s Department of Disability Services. On the high-profile corner of Gympie and Samsonvale roads, the property generates a net return of about $600,000 a year, plus GST and outgoings.
Tim Jones and Trent Bruce, from Raine & Horne Commercial, were the marketing agents appointed to take the property to auction.
Mr Jones said a high level of inquiries was fielded from arrange of local investors and larger property syndicates, reflecting the strong demand for “decent” investment properties, particularly those with upside.
“In the current low interest rate environment we are definitely seeing a substantial increase in inquiries from investors,” he said. “
The successful purchaser on auction day was an experienced private investor with plans for future development.
“This property has the benefit of being on a very prominent corner in the Strathpine area.
“It also has an undeveloped parcel of land with a DA in place for an additional 1200sqm of offices.”
Mr Bruce said all but one of the asset’s tenants had occupied the complex since it was built in 2003.
However, he said a short term weighted average lease expiry had put off several prospective buyers and that was reflected in the softer yield realised.
Mr Bruce said four registered bidders raised their hands for the 10-year-old property and proceedings were kicked off with a “cheeky” offer of $4.5 million before bids quickly escalated into “the high fives”.
“Investment properties are definitely attracting the most interest at the moment, particularly those in the $2 million to $3 million price bracket,” he said.
“But even in the $3 million to $6 million range, well-located properties with upside are in demand.
Source: The Courier Mail, 11 October 2013