This article is from the Australian Property Journal archive
A Beenleigh industrial property that was withdrawn from the market amid uncertainty during the early COVID period has sold four years later at a 55% premium.
The 12,154 sqm property across 5-7 and 9-15 Thorsborne Street sold for $8.55 million. The New Zealand-based owners of more nearly 25 years had received offers of $5.5 million when they initially put the property to the market in January 2020, before they took the asset off the market as the pandemic took hold.
LJ Hooker Commercial Brisbane’s Ben Armstrong and John Barter facilitated the deal, with the sale price reflecting a 6.7% net yield.
The combined site is occupied by two separate tenants. German-based scaffold manufacturer PERI has three years remaining on its lease over 9-15 Thorsborne, which totals 8,093 sqm, while Fortress Collision Repair Group has signed a new five-year lease over neighbouring 5-7 Thorsborne, across 4,061 sqm. The tenancies generate a combined total net income of $579,584 per annum.
“The sale reflects the strength and resilience of industrial property in Brisbane over the last four years,” Barter said.
“Though the market had shifted considerably, the buyer identified the property as under-capitalised with the potential for future development to enhance its value.”
In the 25 years the previous owners had held the site, only one of the properties has spent time vacant, and that was for only four months, according to the agents.
The property is centrally located within the Beenleigh industrial precinct, offering efficient access to the M1, connecting to Brisbane, while the Yatala Enterprise Centre is less than 10 minutes to the south.
Industrial yields south of Brisbane are averaging between 6% to 7%. Armstrong said that while there’s talk of the industrial market slowing down in terms of growth, Queensland’s ongoing population growth and the 2032 Olympic and Paralympic Games will bolster demand for factories and warehouses amongst manufacturers, and construction and logistics companies.
“There’s not enough stock coming to the market,” he said.
