A Sydney-based private investor is paying $42.08 million for two industrial assets in Acacia Ridge, about 15 kilometres south of the Brisbane CBD.
The properties are occupied on long-term leases by companies acquired in 2017 by GFC Alliance, headed by Britain’s Gupta family.
They include 220-240 Bradman Street, a site which contains multiple freestanding structures totalling about 12,500 sqm. The 5.8 hectare holding is leased to Onesteel Reinforcing Pty Ltd.
Neighbouring this, 134-160 Ingham Road spreads 4.5 hectares. Leased to Austube Mills Australia, it also contains several buildings, with a floor area totalling 25,471 sqm.
At the rear of the sites, an active rail siding provides access to the Acacia Ridge Rail Yards.
The selling agents said terms of sale were agreed in the fourth quarter of 2018, but settlement was delayed until this week to process the title change and allow the deal to be freehold.
“Throughout the sale process we received substantial interest from major institutions and large syndicates who appreciated the calibre of this large-scale portfolio due to its solid and stable income and the recapitalised tenants covenant following the GFG Alliance acquisition.,” Mr Beirne said. “The secure nine-plus year weighted average lease expiry is currently returning a total of $3.3 million per annum.”
On that basis, the investments are trading on a blended passing yield of 7.8 per cent.
Mr Iuliano said opportunities to purchase quality industrial stock in Queensland and Australia-wide are limited and competition among investors is building, particularly as institutional capital seeks greater exposure to the sector.
“Assets that offer strong leasing covenants are keenly sought, as evidenced by the Acacia Ridge portfolio sale process. Investors see portfolio transactions as a strategic channel to secure assets of scale when stock is scarce.”
Mr Frazer-Ryan added that a selling point was that both properties directly benefit from an 800m long rail siding which links directly to the Acacia Ridge Rail Terminal, the largest road and rail intermodal terminal in South East Queensland.
“These properties are two of only eight Acacia Ridge sites between 3ha and 25ha with either existing or potential direct rail access to/from the Acacia Ridge Rail terminal.”
Mr Hyland said “Acacia Ridge is well placed for access to major road and rail routes. The state’s infrastructure construction cycle is due to peak next year, once multiple major projects are in full swing, and industrial sector activity is following the upward trajectory.”