Volvo on the out as occupier buys dealership
A Brisbane investor has reaped a 25 per cent capital gain in five years from a Gold Coast truck dealership and workshop leased to Volvo arm Mack.
At auction this week, the Carrara asset, 107-115 Spencer Road, collected $6.055 million from a New South Wales business owner planning to move in upon lease expiry in two years (or three, if the occupier exercises an option).
The vendor paid $4.84m in February, 2019.
They recently renewed the lease at a starting net rent of $400,183.
Carrara is six kilometres south west of Surfers Paradise.
Occupier bid harder: agent
With a 1150 square m building covering a small portion of the 4949 sqm block, 107-115 Spencer Rd was marketed for its long-term development upside (story continues below).
“We had eight registered bidders…with interest coming from a mix of owner occupiers and investors,” Ray White Commercial’s Peter Laoudikos said.
“However, owner occupiers competed harder on the day, with an interstate buyer landing the winning bid with the intention of waiting out the lease and relocating his business to the Sunshine State,” he added.
“The Gold Coast industrial market remains very competitive, which was evidence throughout the campaign,” according to the executive.
“Industrial property is in the highest demand out of all the asset classes.
“Buyers were attracted to this property due to its location just 30 seconds drive to the M1, the hardstand and the short lease term”.
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