Situated on a 45,000sqm site at 731 Curtin Avenue East in Pinkenba, the property comprises of a bulk storage warehousing facility including three high quality corporate office and warehousing units totalling 15,000sqm of gross floor area. The property was sold fully tenanted and returning approximately $2,085,000 per annum.
Deal analysis indicates the initial transaction yield at 5.8% with strong scope for future income growth.
Simon Beirne and Anthony White of Colliers International marketed the property as exclusive selling agents in a 5-week on-market Expression of Interest campaign which generated over 150 enquiries.
“The buyer panel was made up of REITS, wholesale capital and high net worth privates with the latter being more aggressive and offering cleaner terms,” Simon Beirne said. “We believe this trend in the market is set to continue while institutional groups reassess their position.”
“The TradeCoast has continually outperformed other major markets with strong rentals and lower historical vacancy levels,” said Anthony White. “We expected interest from a wide range of groups and were pleased with the engagement and strong competition that resulted in acceptable deals being received from several groups at the close of the second round.
“This deal underpins the confidence in the industrial and logistics sector, particularly with tenant profiles who are somewhat sheltered from the economy wide COVID-19 impact.
“Arcadia have done a great job in delivering a staggered leasing profile, with a 6-year weighted average lease expiry and no two leases coming up for renewal in the same year,” said Anthony.
The leasing profile for this asset included Cement Australia, BASF Australia and John S Hayes, a private company trading in wholesale cleaning and hygiene products.