GM Property pays $10.4m for Wacol industrial investment

GM Property has paid $10.4 million for a Wacol industrial investment despite most of the the rental agreements expiring next year.

Perth investor, developer and manager GM Property, has paid $10.4 million – reflecting a six per cent net passing yield – for a Brisbane industrial asset with a short 1.07 year Weighted Average Lease Expiry.

The Wacol property contains three sheds with drive-around access and high quality offices within a building facing Tile Street.

The multi-building, multi-tenanted property, 63 Tile Street, Wacol, attracted plenty of other interstate – plus local – interest, according to the marketing agents who closed an Offers to Purchase campaign in mid-August.

“The location, quality of the assets and future upside” were the main drivers, along with an active investor market, Knight Frank’s Mark Clifford and Ned Jefferies added.

Inguz Harvest (OneHarvest), Queensland Tissue Products and Southern Sheet and Coil are the occupiers.

The Wacol site

Over 1.62 hectares, the Wacol property contains 7190 sqm of industrial space in three sheds with drive-around access, one with a gantry crane.

It is also designed with a total 619 sqm of corporate grade offices, hardstand, and is accessed via two crossovers.

Wacol is about 18 kilometres south west of Brisbane.

Last September, APN Industria REIT spent $18.4m on a frozen food factory in the suburb at 60 Grindle Road tenanted to Vesco Brands which owns or licences Lean Cuisine and On the Menu products.

Not long earlier, Desane Group Holdings, an entity of another ASX listed purchaser, chose the area for its first Queensland acquisition – outlaying $9.5m for 16 Industrial Avenue (story continues below).

The City of Brisbane Investment Corporation offered that property with a lease to the council’s Fleet Solutions arm.

Flexible tenancies, rental growth potential: agent

The 63 Tile St buildings allow for multiple and flexible tenancies and the purchaser can potentially restructure and renegotiate the leases in place to capitalise on rental upside and create a stronger income returning property, Mr Clifford said.

“Assets of this calibre and in the tightly held suburbs of Wacol and the broader South West industrial precinct are rarely offered to the market, so it appealed to investors,” he added.

“We have seen lower sales activity in Brisbane’s industrial investment market this year due to COVID but as an asset class industrial property has bene the most resilient in the commercial market and remains in demand.

“Sales activity is starting to return now, particularly in the $5-$25m price bracket, and we expect 2021 to be busier as confidence continues to grow”.

In September, 2018, GM sold Lendlease managed Australian Prime Property Fund a 5.5ha Smithfield, Sydney, logistics estate for $44.8m – a significant rise on the $19.5m it paid Cromwell five years earlier.

With 26,000 sqm of area, that property was rented to eight occupiers.

Inclusive of the office space, the asset contains 7809 square metres of lettable.
The 1.62 hectare site is not far from Ipswich Motorway.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of