EG flips Brisbane industrial investment
EG Funds has sold an industrial investment bought on a funds through basis five years ago.
The asset manager has banked $33.5 million for 28 Flint Street, at the Richlands/Inala border.
It paid Frasers Property Industrial $21.5m for the Australian Core Enhanced Fund.
Upon completion in 2023, EG secured Maersk to a seven year lease.
The on-sale delivers unitholders a 27 per cent internal rate of return.
The deal comes six weeks since we reported EG sold a collection of Surfers Paradise site for $35m – a drop on the $42m it paid Cromwell in 2010.
Securely leased
With a 12,211 square metre office/warehouse occupying about 55pc of the 3.08 hectare site, 28 Flint St is trading on a 5.1pc passing yield.
Based on market rent ($2,014,815 per annum), the return is six per cent.
The weighted average lease expiry is 4.6 years.
“The sale of 28 Flint St reflects the ongoing depth of capital seeking well located, high quality logistics assets with secure income profiles,” EG managing director and chief investment officer, Chis Pak, said.
“Assets of this calibre continue to attract strong interest, particularly where there is clear potential for future rental growth supported by location and tenant quality,” he added.
Colliers’ Gavin Bishop, Sean Thomson, David Brisk and Nick Evans with CG Property’s Mark Gilbride and Michael Callow were the agents.
Inala is about 20 kilometres south west of Brisbane’s CBD.
Also today we are reporting OzProp sold a modern Mackay industrial investment.
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