Queensland investor Guardian Ait Pty Ltd has paid $6.96 million for an industrial property in Crestmead, about 32 kilometres south of the Brisbane CBD.
The sale has been struck on a 6.03 per cent yield which marketing agency Colliers International said is a record for the area.
The 2.2 hectare site (pictured, top) is leased for 15 years to Kennards Hire, Australia’s biggest family owned supplier of hire equipment.
At 35 Magnesium Drive, the property contains an 1858 square metre A-grade building with an office and servicing bays.
Broker Nick Evans said an expressions of interest campaign generated over 70 enquiries “attracting small industrial funds and syndicates as well as high net-worth privates”.
“This was a great offering that attracted a lot of investors due to the lease tenure of 15 years which is rare to see on-market.
“We received six offers with Guardian AIT coming through as a cash buyer who recognised the value in this long-term investment and put forward the cleanest terms and the highest offer to beat the competition.
“Another fact that attracted the investors is that Kennards Hire plan to spend $500,000 on improving the site through upgraded hardstand, office refurbishment and cosmetic modifications”.
Mr Evans said the low site coverage of buildings suited Kennards Hire “as it require a lot of storage space outside for their equipment”.
“This property will function as an amalgamation of a few of their branches which will enable them to steadily continue their expansion nationally.
“With this transaction delivering a record yield for the area, we continue to witness yields sharpening for A-Grade investments across Brisbane southern industrial regions,” Mr Evans said.
Last week we reported that Charter Hall was paying Blackstone about $180 million for the Crestmead Distribution Centre (pictured, above).