A South Tweed industrial property, leased to one of Australia's largest self storage companies - National Storage, has sold for $3.85 million in a deal thought to be one of the largest in the northern New South Wales region so far this year.

Colliers International Gold Coast Industrial Director Pat Cavanagh handled the sale of the property, located at 10 Corporation Circuit in South Tweed Head's premier bulky goods precinct and just minutes from the Queensland-New South Wales state border.

The vendor, APN Fund Management Limited, placed the property on the market via an expressions of interest campaign through Colliers International in April this year.

Five expressions of interest were received for the property, which eventually sold to a private investor from the Gold Coast on a yield of 8.8 per cent. The sale has just settled.

National Storage has 12 years remaining on a 15 year lease, worth about $349,000 per annum with a three per cent annual review.

The storage facility is situated on a 6,505sqm holding and measures 2,955sqm. It features 308 individual storage units, an on-site manager's residence, administration and office area, full perimeter fencing and three street entry points.

Mr Cavanagh said the facility occupied almost one third of Corporation Circuit - a sought-after industrial address within the bulky goods precinct featuring national companies including Bunnings, Harvey Norman, Toyota, Dick Smith, Retravision and Aldi.

"This precinct is a very successful bulky goods trading area, with business derived from the significant residential catchment areas surrounding it in South Tweed and Banora Point," he said.

"The property drew the interest of investors from Canberra and Bathurst as well as locals due to this prime location, and the fact it had a major national tenant in place on a long-term lease, guaranteeing a solid investment.

"The property itself is immaculate in appearance and superbly maintained, another key selling point for investors."

National Storage was established in December 2000, following the merger of Stowaway Self Storage, National Mini Storage and Premier Self Storage, with about 60 centres across the country.

Mr Cavanagh said the recent Colliers International Market Indicators Report - Gold Coast/Northern NSW Industrial had found industrial properties priced below $5 million were generating the strongest enquiry and sales.

"We are finding cashed up investors are looking for opportunities in the sub-$5 million market to secure good quality properties that may not have become available in a stronger market," he said.

"Sentiment is also turning, with a feeling now that the property clock is nearing 7 o'clock on the upswing.

"This is being reinforced by the strong fundamentals underpinning the Gold Coast and Northern NSW industrial markets, including population growth, a vast pipeline of public and private construction works either underway or planned and historic low interest rates.

"Changes to land tax legislation have also made industrial properties more attractive, as investors are now able to pass on land tax charges to tenants."

 

For further information please contact:

Sarah Stewart
National Communications Manager
Tel: +61 2 9257 0210
Mob: +61 411 66 1544  
Email: sarah.stewart@colliers.com