South East Queensland industrial facility with value-add potential sells for more than $23m

• The property was purchased by Northshore Group in a deal negotiated by Knight Frank
• The multi-tenanted property currently consists of a 3.74 hectare site occupied by five buildings with a total gross floor area (GFA) of 9,998sq
• The site has a surplus development area of 10,000m2 and 2,700m2 of partially finished buildings
• Since purchasing the property, Northshore Group have commenced refurbishment works
• Two tenancies have been re-leased from $172/sq m, up from $100/sq m 2 years ago

A multi-tenanted prime industrial facility with future development potential in South East Queensland has seen a new tenant move in following its recent sale.

The property at 91 Darlington Drive in Yatala was recently purchased by Brisbane-based investment group Northshore Group for $23.6 million in a deal negotiated by Sam Harper and Elliot Ryan of Knight Frank.

Located within the Yatala Enterprise Area (YEA), strategically situated between Brisbane and the Gold Coast, the multi-tenanted property currently consists of a 3.74 hectare site occupied by five buildings with a total gross floor area (GFA) of 9,998sq m.

However, it has a future development area of up to 1 hectare with current low site cover and upside through the completion of several semi-completed prime buildings onsite, which have a total GFA of 2,700sq m.

Since purchasing the property, Northshore Group have embarked on works to improve the site, which has attracted new occupiers within the estate according to Knight Frank’s Sam Harper.

“Work is well underway on improving the existing tenancies and finishing off the incomplete buildings,” he said.

“Since the property has been sold we have leased Building 4 to a new tenant, fabricator Ideal Stone.

“Two years ago we leased this building for $100 per square metre to a transport tenant, but the same tenancy has now been leased for $172 per square metre net.

“Northshore have also pre-committed an existing tenant in the complex to a 900sq m warehouse for $220/sq m net.

“This demonstrates the rental growth in the market and the continued strength of Yatala’s industrial market in particular, with a lack of supply of comparable stock.

“However, it is also highly reflective of the work Northshore Group have put in to improve the property over the past few months, with the refurbishment of the tenancies.

“We are receiving strong tenant interest for a few vacancies coming up in the complex, with other attractions being the property’s low site cover and flexible tenancy arrangements, as well as the ability to have 24/7 operations.”

Ideal Stone has leased 2000sq m across Building 4 at 91 Darlington Drive for five years, equating to a rental rate of $345,000 per year net.
The property sold on an initial yield of 4.64%.

Mr Ryan added:

“The buyer is known for its astute acquisitions of value-add investments like this one at Darlington Drive.

“The property was purchased with mainly month-to-month tenants which Northshore will reset or release.”

The Yatala industrial property is zoned high impact industry, and allows for 24/7 operation, which is suitable for manufacturing and warehousing.

It also has excellent truck access and hardstand areas for container set down.

For more details contact: Sam Harper or Elliot Ryan