Signage group sells Brisbane base with a leaseback
Centennial has made another Brisbane industrial play – this time a purchase.
The Sydney based investment manager is paying $13.1 million – an initial 5.35 per cent passing yield – for the Bulimba asset, 59 Taylor Street.
Albert Smith Group offered it with a two year leaseback.
The rental agreement is triple net with a fixed 3.5pc mid-way review.
After that, Centennial, also a develop, plans to reposition.
Modus Property Group’s David Gibson and Nick Badiera represented Albert Smith Group – which paid $1.64m for 59 Taylor St in 1990.
That seller was Suncorp Insurance.
Bulimba, on the Brisbane River banks, is four kilometres north east of town.
Site set for Brookfield JV
On 9264 square metres zoned Industry A, 59 Taylor St contains 4936 sqm in two buildings.
Centennial plans to refurbish these upon lease expiry then offer them to multiple tenants.
The assets will then be slotted into the Enhanced Value Partnership, created with Brookfield mid last year (story continues below).
“Land in Bulimba is extremely rare which is especially the case for industrial parcels,” Centennial head of Property Funds, David Cupit, said.
“Underscoring the site’s excellent development upside is Bulimba’s emergence as one of Brisbane’s top 10 suburbs for median house price…sitting at $1.88m,” he added.
“The site is also under 200 metres from the Bulimba Barracks mixed-use residential redevelopment that will add a further 800 dwellings to the area,” according to the executive.
Centennial strikes another Brisbane deal
The Bulimba deal comes eight weeks since Centennial paid Sentinel $29.165m for a Cleveland industrial park and seven months since it outlaid $35.5m for an Ipswich industrial site – set to make way for a business park.
The group also recently fast tracked construction of the second stage of its Geebung Industrial Park – set to add 9010 sqm.
Last April meanwhile, the company divested a former wrecking yard at Stapylton to Brisbane Isuzu for $16.85m.
It later secured two tenants for Oxley warehouse investments.
With the Bulimba deal, Centennial now controls 10.7ha in seven assets in Brisbane’s Australia TradeCoast precinct.
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