This article is from the Australian Property Journal archive
PROPERTY investment group Quanta Investment Funds is backing industrial, adding a prime industrial asset in Paget, Mackay for $16.7 million.
The property at 91 Connors Road comprises a fully occupied modern industrial facility currently leased to United Group Limited (UGL), a subsidiary of Germany’s largest construction company, HOCHTIEF, on a 15-year triple net lease.
“Securing this property in a market where transactions remain subdued is a significant achievement. We have stayed true to our strategy of seizing opportunities when they present themselves,” said Stacey Jones, CEO at Quanta.
“This investment offers built-in capital and income growth potential, with the current passing rent approximately 20% below market rates. Additionally, the property provides significant development upside due to the low site cover and tenant demand for additional lettable area.”
Australia’s industrial market is forecast to remain severely undersupplied, despite around 2.3 million sqm of warehouses currently under construction across the country and a normalisation in demand following the pandemic boom.
“We’ve been very pleased with the support from our investors. Over the past few years, industrial assets have been the sector of choice, and we’re thrilled to offer this outstanding opportunity, which combines a strong return profile with tremendous value-add potential,” added Jones.
The 8,881sqm Paget facility across two large warehouses occupies just 29% of the 3.1-hectare site, with the outgoing vendor, Arcana Capital, also committing $1.5 million towards capital works upgrades.
“This asset has delivered great returns to our investors over the years but in line with the original strategy it is time to sell,” said Campbell Newman, chair at Arcana Capital.
“We believe that Quanta has secured a fantastic property that will continue to perform for their clients and offers clear capital growth moving forward.”
