Investec spends $15.6m on Brendale industrial investment

Investec Australia Property Fund (IAP) is paying $15.614 million on a funds through basis for a Brisbane industrial investment.

The deal was struck with Felton Property Group, which will now exercise a call option to acquire Lot 3, Belconnen Crescent, Brendale, from its current owner, Alberton Holdings Qld Pty Ltd.

Prior to marketing it for on-sale, the developer pre-committed camping retailer 4WD Supacentre to a distribution centre it will build on the 2.1 hectare parcel.

Based on the starting rent, the property is trading on a 6.25 per cent initial yield – or 6.13pc for after transaction costs.

The agreement will see Investec make an initial payment of $3.885m to Alberton, with the balance paid progressively to Felton, which is responsible for construction.

Settlement is expected in October.

Brendale is about 20 kilometres north east of the city.

IAP portfolio is nearly a third industrial now

Following the deal, the trust’s exposure to industrial real estate increases to 31pc measured by both income and value.

IAP chief executive officer Graeme Katz said the Brendale property “will be a high quality 9300 square metre generic warehouse and distribution facility with 10,852 sqm of hardstand and 95 on-site car parks which will suit multiple users” (story continues below).

4WD Supacentre is paying a starting annual rent of $105 per sqm.

The agreement factors in fixed 2.75pc yearly increases.

CBRE’s Hugh Adnam and Dillon Murphy negotiated the six year lease deal.

The same agents, with colleague Edward Bull, also brokered the funds-through sale.

The executives said a number of national property funds showed an interest in buying the investment.

Of the lease campaign, Mr Adnam added, 4WD Supacentre was attracted to a competitive rent plus a low site coverage (the warehouse spreads over just 44pc of the site).

“With its business expanding significantly, our team has been working to find 4WD Supacentre a new home from Brendale to the Trade Coast over the past two years and the property at Lot 3 Belconnen Crescent is a great result,” the executive said.

The freestanding warehouse, which will act as an online fulfilment centre, is a 20 minute drive from Brisbane Airport.

Artist’s impression of the Brendale distribution centre.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco