Tenanted Hemmant Warehouse/Office Building Sold for $1.7 Million
A freestanding investment opportunity at Hemmant in the Australia Trade Coast precinct in Brisbane’s east has been sold by Ray White Commercial for $1.7 million, setting a record yield for the area.
The tenanted warehouse/office on an approximately 810 sqm site at 49 Canberra Street, Hemmant, was sold off-market to a local investor by Ray White Commercial TradeCoast’s Jared Doyle on behalf of a private local developer.
“This sale reflects a 7.0 per cent net return, which the valuers tell me is a new record for the area,” Jared Doyle said.
“I believe this is a reflection of the current investor demand we are experiencing with official interest rates remaining at record lows. A 7.0 per cent yield is the new 8.0 per cent.”
The complex which includes an approximately 458 sqm clear span warehouse and approximately 276sqm of office and training area is leased to Life and Rescue International Pty Ltd – a subsidiary of global shipping company Wilhelmsen Group – on a 5+5 year term of $120,000 per annum.
“The property was sold for the asking price of $1.7 million as an off-market deal,” Jared Doyle said.
“I made one call to an investor I knew was in the market on a Monday, inspected it with them on the Tuesday and had an unconditional contract in front of the owner at his asking price on the following day.
“Knowing the long term tenant is a subsidiary of one of the world’s largest shipping companies, provided the Investor purchaser with a great deal of comfort in pursuing the asset, particularly on this tight yield basis.”
The fully fenced and gated property is ideally located near the Gateway Motorway and is in close proximity to Brisbane Airport and the Port of Brisbane.
“The property’s location in the Australia Trade Coast precinct was an attractive feature as it is fast becoming one of the most dynamic business locations in Australia,” Jared Doyle said.