Northside Feels Investor Heat 21-10-16
A FULLY leased industrial complex at Geebung, on Brisbane’s northside, has changed hands as competition continues to heat up in the investment market.
The property, at 477 Newman Rd, comprises 2615sq m of office/warehouse space over three tenancies and sold at a yield of 7.5 per cent.
It was snapped up by a Brisbane private investor for $3.7 million in a deal negotiated by Lawrence Temple, from Raine & Horne Commercial.
Mr Temple said he fielded about 30 inquiries, which resulted in six formal offers being put on the negotiating table by the close of the expressions of interest campaign.
“We saw a lot of interstate and even international interest during the campaign,” he said. “However, the top group of offers came from local Brisbane investors.”
Mr Temple said the successful buyer owned other properties in the area and snared the Newman Rd asset with an unconditional offer.
The property is occupied by tenants Gemini Industries, Airpure Australia and Sourcehub and has a weighted average lease expiry of 2.1 years.
It generates a total rental income of $280,000 a year net plus GST and outgoings. On a 3642sq m site, the property also features three-phase power and 24 car parks.
“This is a strong result and shows the investment market is still strong,” Mr Temple said.
“Also, the functionality, layout and fundamentals of the asset were excellent.”
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