A commercial property investment group had no trouble securing interest in the recent purchase of a rare Brisbane industrial space.
Cushman & Wakefield’s David Gibson and Aaron Dahl negotiated the sale of 44 Aquarium Avenue, part of the Australia TradeCoast economic development area, to Queensland-based Direct Commercial Property (DCP) for $10 million.
DCP managing director Ed Bull described securing the property as a “coup”.
“With an immediate income distribution of 8 per cent to investors, the equity required was taken up very quickly and oversubscribed within an hour,” Mr Bull said.
“Right now, DCP has surplus capital looking to deploy in quality assets that represent value for our investors, and 44 Aquarium Avenue represents significant value,” he said.
The 10,145-square metre site with a building area of 4,565 square metres also offers a feature that’s been hard to come by for industrial lessees.
“Importantly, the property is home to specialised dangerous goods facilities which carry a huge replacement value,” Mr Bull explained.
“There are currently no existing vacancies in Brisbane with dangerous goods use approval,” added.
The property’s built structures include three fully approved and compliant dangerous goods warehouses, as well as office space.
It’s currently fully leased until mid-2023 to ITW Australia, a manufacturer of automotive aftermarket products in Australia and New Zealand and part of the global ITW family, a Fortune 200 company headquartered in the US, worth approximately 13.4 billion.
Mr Gibson said that Cushman & Wakefield had been receiving particular interest in land-rich opportunities of this nature and that such properties were extremely scarce in the TradeCoast precinct.
“We are seeing significant rental growth throughout the TradeCoast precinct due to strong occupier demand and very limited supply of existing and speculative stock. For investment groups to gain exposure to this, they are targeting short WALE investment product,” he said.
ABOUT THE AUTHOR
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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