20/06/2014 - Lack of Investment Stock Leads to a Rise in Vacant Possessions
A vacant industrial facility north of Brisbane has been snapped up in a $1.5 million deal as cashed-up investors continue to scour the market’s slim pickings.
The property at 5-9 Terrence Rd, Brendale, was purchased by a Brisbane-based private investor to add to his portfolio of assets in the Moreton Bay Region.
Tim Jones from Raine & Horne Commercial and Dillon Murphy from Ray White negotiated the sale.
“Investors have been coming back to vacant possession opportunities,” Mr Jones said.
“They’re having to because zero stock has been coming on line and there aren’t many tenanted investment options on the market at the moment.
“Typically, the guy who bought the Terrence Rd property is someone who purchases design and construct type opportunities.
“But at this price point and with a few tenants circling the property he could see the value in taking on the risk of a vacant possession and spending the money on and upgrading the asset.”
The property comprises an older style metal clad and brick facility totalling 1700sqm, including about 520sq m of office space with the balance being clear span warehouse.
It also features access via multiple roller doors, good onsite power, multiple partitioned offices as well as ample area on-site for container set down and delivery.
Mr Jones said the purchase reflected the buyer’s confidence in the area and the continued growth through the Brendale industrial precinct.
“The number one drawcard was the Brendale location,” he said. “There’s a lot of development going on in this area.
” Mr Jones said a leasing deal reflecting a yield of about 10 per cent was signed by a tenant a few weeks after the property went under contract.
Source: The Courier Mail, 20th June 2014