Sentinel, Ascot offload new Crestmead industrial investment for $15.5m

The Crestmead site (highlighted) when it was being marketed for sale last year.

EXCLUSIVE

Sentinel Property Group and Ascot Capital Limited have sold a new purpose built industrial warehouse in Brisbane’s south Crestmead.

On a 1.76 hectare site at 102-108 Magnesium Drive, the 10,159 square metre facility – 1348 sqm of which is mezzanine warehouse space – is trading for $15.5 million.

The investment was offered with a 10 year lease to Oxworks, a fence and gate maker which occupies nearby #87 in the street.

Oxworks also rents a 1.6 hectare property across the road from its next facility: coincidentally that one, 116 Magnesium Drive, was purchased by the Queensland investor for its Sentinel Industrial Trust for $9.6 million in May 2018.

The Sentinel/Ascot deal for 102-108 Magnesium Drive reflects a 6.3 per cent passing yield.

CBRE’s Jack Pershouse and Edward Bull were the marketing agents.

The same brokers sold the vacant tract of land at 102-108 Magnesium Drive, last year, for $3.2 million. They also traded #116 to Sentinel.

Site is opposite Metcash’s landmark Crestmead Distribution Centre

The new Oxworks facility is opposite Crestmead Distribution Centre – an enormous 22 hectare investment which Charter Hall picked up from Blackstone last August for $183.6 million.

At 105-137 Mangesium Drive that asset is configured with three buildings containing a total of 89,245 sqm of lettable area.

Leased to Metcash, which controls brands including IGA, Thirsty Camel, Cellarbrations and Campbells Cash and Carry, it traded on a 5.2 per cent passing yield.

Last August Guardian Ait Pty Ltd paid $6.96 million for a 2.2 hectare industrial property in the suburb leased to Kennards for 15 years.

Crestmead is about 29 kilometres from Brisbane’s CBD.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco