19/04/2013 - Investors Turning To Commercial Holdings
Investors are casting a wider net and giving their portfolios some northern exposure in the Brisbane market. in one of the latest deals, a local investor has snapped up a fully leased, stand-alone showroom/ warehouse at North Lakes in a $1.75 million deal.
The 1050sq m asset is in the newly developed three building North Lakes Trade Park complex at lot 30-31 Burke Crescent.
It is occupied by plumbing supplies chain Tradelink on a five-year lease and the purchase price equates to a yield of about 8 per cent.
Raine & Horne Commercial’s Lawrence Temple introduced the buyer to the property, which was marketed by his colleagues Nick Bandiera and Trent Bruce.
‘‘I’d been dealing with the investor for a number of months,’’ Mr Temple said. ‘‘He’s got a few commercial properties and was looking for another one to put some cash from a term deposit into for a better return.’’ Mr Temple said the buyer was attracted to North Lakes asset because of its high-profile location and blue-chip tenant. ‘‘The sale shows that there is still strong investor interest for assets up to a few million dollars as long as it has got the fundamentals such as a good covenant, good position and is a quality property,’’ he said.
Mr Bandiera said the building was part of a complex developed by the Thorn Group, one of the most active developers in the area. He said three-quarters of the space in the complex had been pre-committed to complimentary building trade businesses. ‘‘Investors are recognising what is happening in the area and can see it is going to pay dividends in the years to come,’’ Mr Bandiera said. ‘‘There’s a significant amount of development and infrastructure planned within the area.’’