INDUSTRIAL BONANZA AS INVESTORS JUMP IN 19-02-16
A FULLY leased industrial asset on Brisbane’s northside has sold for almost $4 million as strong demand from investors shows no signs of wavering.
The property at 65 Wentworth Place, Banyo, was snapped up jointly by two Brisbane private investors.
It changed hands for $3,897,500 on a yield of 7.2 perncent.
Lawrence Temple from Raine & Horne Commercial, who negotiated the deal, said there was strong Interest in the asset during the expressions of interest campaign.
“The demand for blue chip passive investments is not slowing and there are no signs of it wavering,” he said.
“Good, clean investment assets with good fundamentals, long-term leases and good covenants are still sought-after.
“If anything we are seeing a further tightening of yields as competition for these types of quality assets increases.”
Mr Temple said the Banyo asset attracted 27 inquiries and nine formal offers.
“There was a lot of interstate, and even some international, interest during the campaign,” he said. “However, the top group of offers came from local seasoned investors.”
The property comprises a 2400sqm office-warehouse on a 4000sqm parcel of industrial zoned land with hardstand and truck turning areas, 3-phase power and 30 off-street car parking spaces.
It is occupied by electricity industry equipment supplier The Energy Network on a five year lease with two five-year options. At the time of its sale, it was returning rental of $288,000 a year plus GST and outgoings.
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