Chris Herde

A QUALITY freestanding industrial property on a large site in Brisbane’s northern suburbs has been snapped up pre-auction
by a local investor.

They paid $4.15m for the 1060sq m office/warehouse at 190 Flower St, Northgate, after a deal struck by Raine & Horne Commercial’s Trent Bruce and Lawrence Temple.

Mr Bruce said it was an active campaign and the vendor opted to take advantage of the strong interest in the property to sell prior to auction.

“The crucial thing here was the underlying land value, although the buyer sees it as a passive investment,” he said.

“It’s an older building, which was refurbished five years ago, but it is on a 4700sq m site in a central location which is pretty rare.

“It was sold cash unconditional and the owners were happy with the clean nature of the offer.”

The property is tenanted by telecommunications contractor High Force, which has signed a new five-year lease with an option. It was sold for a yield of 5.19 per cent. Mr Bruce said auctions were still “ticking along well”.

“The interest we’re getting isn’t as strong as it was at the start of the year, but there are genuine buyers and A-grade stock is still going to achieve tight yields and the secondary stock still sells at a realistic price level,” he said. Mr Temple said 190 Flower St was a quality property that attracted strong interest.

“This one sold for 5.19 per cent yield and the purchaser was attracted to potential future capital value increase because of its size and being near Nundah Village.”