This article is from the Australian Property Journal archive
BRISBANE-based investment group Northshore Group has picked up a multi-tenanted industrial facility in south-east Queensland for $23.6 million, and has immediately gone about improving the expansive site.
Located within the Yatala Enterprise Area, situated between Brisbane and the Gold Coast, the multi-tenanted property at 91 Darlington Drive in Yatala currently consists of a 3.74-hectare site occupied by five buildings with a total gross floor area (GFA) of 9,998sq m.
However, it has a future development area of up to one hectare with current low site cover and upside through the completion of several semi-completed prime buildings on-site, which have a total GFA of 2,700 sqm.
Sam Harper and Elliot Ryan of Knight Frank negotiated the sale on an initial yield of 4.64%, with mainly month-to-month tenancies which Northshore will reset or release.
Works are now well underway on improving the existing tenancies and finishing off the incomplete buildings. Since the sale, the 2,000 sqm Building 4 has been leased to new tenant, fabricator Ideal Stone for five years, at an annual rental rate of $345,000 per year net.
“Two years ago we leased this building for $100 per sqm to a transport tenant, but the same tenancy has now been leased for $172 per sqm net,” Harper said.
Northshore has also pre-committed an existing tenant in the complex to a 900 sqm warehouse for $220 per sqm net.
“This demonstrates the rental growth in the market and the continued strength of Yatala’s industrial market in particular, with a lack of supply of comparable stock,” Harper said.
Industrial and logistics property landlords nationally can expect favourable conditions for rental growth in the coming years, as manufacturing, trade, demographic and consumption demands necessitate some 3.3 million per sqm on new space per annum between now and 2030 in a severely land-constrained market.
Harper said the leasing results were “also highly reflective of the work Northshore Group have put in to improve the property over the past few months.”
He said other attractions to tenants are the property’s low site cover and flexible tenancy arrangements, as well as the ability to have 24/7 operations.
Meanwhile, on the Sunshine Coast, Plastec Australia, a manufacturer innovative plumbing products, has secured two industrial warehouses in separate off-market transactions with a combined value of $9 million as part of its operational growth plans.
The properties, located at 34 Enterprise Street and 21 Enterprise Street in Caloundra West, have a combined building area of 3,541 sqm.
“These new facilities will enable us to enhance our production capabilities and better serve our customers,” director and founder of Plastec Australia Syd Hawthorne said,
The off-market deals were managed by CBRE’s Jack McCormack and Matt Marenko.
“Given the scarcity of freestanding buildings over 700 sqm across the Sunshine Coast, most transactions are secured off-market with highly competitive offers being made to avoid consideration of an on-market campaign.
Late-year deals filtering through
There has been a suite of industrial transactions across the country of a similar range to the Yatala deal in recent weeks.
Proactive funds manager Centuria Capital has continued to target counter-cyclical opportunities, with the acquisition of a facility in Royal Park in Adelaide’s western suburbs for $22 million, while industrial property juggernaut Goodman Group offloaded three Sydney infill industrial properties to a partnership between Box Capital and Gaw Capital for $87 million.
In Melbourne, Growthpoint has just offloaded an industrial facility in the eastern suburbs for $22 million, at 13% above book value, Warburg Pincus-backed self-storage company StorHub picked up an inner city heritage warehouse site from Salta for $20.5 million, and on the other side of town, in Laverton, a private investor has secured two freestanding warehouse and office buildings for $20 million.
Year-to-date industrial investment deal volumes are at $8.8 billion, up 36% on last year’s $6.5 billion, according to Savills.
