This article is from the Australian Property Journal archive
NATIONAL syndicator GM Property has snapped up a multi-tenanted industrial facility with short term leases in Brisbane’s south west for $10.4 million.
The Wacol property has a gross floor area of 7,809 sqm across three buildings on a 16,187 sqm site, and sold on a yield of about 6% with a weighted average lease expiry of 1.07 years.
Mark Clifford and Ned Jefferies of Knight Frank managed the expressions of interest campaign of 63 Tile St, Wacol for a private vendor.
It provides 619 sqm of corporate grade office accommodation, 7,190 sqm of high functional high-bay warehouse space, and hardstand area with drive around and drive through capability.
“The three separate buildings allow for multiple and flexible tenancies, and the purchaser can potentially restructure and renegotiate the leases in place to capitalise on rental upside and create a stronger income returning property,” Clifford said.
“The location, quality of the assets and future upside reflected a superb opportunity.”
Current tenants include Inguz Harvest (OneHarvest), Queensland Tissue Products and Southern Sheet and Coil, and the site is in close proximity to the Centenary and Logan Mwy, and the Ipswich/Logan Mwy intersections.
“Mutli-tenant, flexible assets of this calibre and in the tightly-held suburb of Wacol and the broader south west industrial precinct are rarely offered to the market, so it appealed to investors,” Clifford said.
He said investors are being drawn to the industrial sector due to the relative resilience of tenants, with sales activity returning, particularly in the $5 million to $25 million price bracket.
Mapletree backs out
However, in the neighbouring suburb of Inala, Singapore-listed Mapletree Logistics Trust has backed out of its $21.25 million acquisition of a logistics asset that had been agreed to in the middle of the year.
In a statement to the SGX, it said the deal was no longer proceeding as “certain conditions precedent in the conditional agreement were not fulfilled by 30 November 2020, being the long-stop date”.
The termination will not have any material adverse impact on the net asset value or distributions per unit for the financial year.
On the same as the announcement, the trust also completed its acquisitions of the remaining 50% interest in 15 properties and a 100% interest in seven properties in China, and another asset in Vietnam, S$575.8 million from a raising of S$644.1 million used to partially fund the acquisitions.
