This article is from the Australian Property Journal archive
MORE than $43.3 million worth of Gold Coast industrial properties have changed hands, including one of the largest industrial land sales ever on the glitter strip.
A Queensland company has paid $32 million for a 5.5 hectare Burleigh Heads site, one of the largest heavy impact industry zoned land parcels in the central and southern Gold Coast, and which is home to tenants including Suez/Violia, Crushcon, Gold Coast Concrete Recycling and Procrush among others, and returns $1.407 million in annual rental income inclusive of outgoings.
The sale of 22 Rudman Parade resulted in a passing yield of 3.55%.
Rudman Commercial Pty Ltd divested the property through an offers-to-purchase campaign undertaken by Crew Commercial’s Josh Wright.
Wright said the campaign yielded 139 enquiries and nine genuine offers, with the site selling within 48 hours of the campaign cut-off date.
He said the site’s location, with easy access north and south from the M1 Motorway, and rental income were both attractive features to buyers.
“We were able to divide potential buyers into three distinct categories comprised of those that were seeking to subdivide the property, developers looking to construct industrial buildings to either sell or lease or select parties that wanted to land bank and collect rent,” with the latter category showing the highest valued interest.
Wright said the number of offers received showed the underlying strength of the Gold Coast industrial property market.
“Demand is being driven by a chronic shortage of land on the Gold Coast, particularly in the central and southern markets,” he said.
“There are basically no vacant industrial buildings on the Gold Coast between 1,000 sqm and 3,000 sqm,” he said, and developers are buying more and more sites for small-scale strata developments to feed demand from owner-occupiers, which is further driving up the price of land. Rental rates have also risen 20% in the past six months.
Meanwhile, a private Gold Coast occupier has beaten strong competition from major funds and investors around Australia to snare an industrial property in the highly sought-after Yatala Enterprise Area for $11.312 million.
The property at 167 Quinns Hill Road East in Stapylton spans 4.04 hectares and is zoned for medium-impact industry.
It sold through Colliers’ David Brisk, Nicholas Evans and Daniel Coburn, in conjunction with Dave Kertesz from Crew Commercial.
Thirteen expressions of interest were received.
The property, which was sold by interstate interests, features a 1,330sqm factory building including ancillary offices, which provides the new owner with a holding income.
Evans said the sale price highlights a severe supply and demand imbalance that continues to affect the industrial market in the Yatala Enterprise Area.
“Investor and developer sentiment is still bullish on the industrial asset class despite rising interest rates, underpinned by strong occupier demand across all size ranges,” he said.
