An entity of the ASX-listed Desane Group Holdings Limited has settled on its first Queensland property investment.
Desane Properties Pty Ltd – which is headquartered with its parent in Sydney – is paying $9.5 million for a 2.2 hectare site in Wacol, about 11 kilometres south west of the Brisbane CBD.
The investment, 16 Industrial Avenue, is leased to the Brisbane City Council’s Fleet Solutions as a maintenance station.
Mr Frazer-Ryan said Desane’s acquisition of 16 Industrial Avenue “is another sign of interstate capital moving up the risk curve and looking for higher yields that aren’t on offer in the southern markets”.
Desane’s latest property is rectangle shaped and configured with a 5039 sqm warehouse and 639 sqm office.
“The campaign generated 65 enquiries and a total of seven offers from a mix of privates, syndicators and listed investment funds from Perth, Adelaide, Sydney and Brisbane,” Mr Frazer-Ryan said.
“It was a hotly contested campaign with Desane offering an unconditional contract.”
Mr Evans added that buyers were attracted to the property’s secure income stream and scope to develop approximately 8,782sqm of land at the back of the block.
“In terms of the current activity we are seeing multiple new entrants into the Queensland industrial market looking to place funds into well located industrial facilities” Mr Evans said.
“Some are even willing to purchase vacant facilities due to the scarcity of available tenanted investments”.
Brisbane City Council is committed to 16 Industrial Avenue on a 10 year lease, expiring in 2022. At that time, it can exercise the first of its two five year renewal options.