Mackay industrial facility sells for $15.1m as investor demand in the region ramps up

The property at 33-41 Diesel Drive in Paget was purchased by Australian property fund manager Natgen from Trilogy Funds in a deal negotiated by Deniz Mete of Knight Frank.

The asset consists of 3,052sq m of gross floor area on 9,831sq m of land, and is fully leased to IMS Engineering through to 2031 on a net lease, providing stable, inflation-linked returns.

Purpose-built for heavy industrial use, the buildings on the site feature significant crane capacity and structural reinforcement - capabilities that are both costly and scarce in today’s construction environment.

Located in Paget’s tightly held High Impact Industry precinct, the asset benefits from low vacancy and strong underlying demand.

Mr Mete said Natgen were attracted to the asset due to its combination of secure, long-term income and highly specialised improvements that are increasingly difficult to replicate.

“The sale underscores the premium being placed on assets with long-term leases, strong tenant covenants and specialised improvements that are increasingly difficult to replicate,” he said.

“It also reinforces Paget’s position as a critical heavy industrial precinct, where limited supply and rising construction costs are driving increased competition for existing assets.

“The transaction provides a clear benchmark for similar industrial investments across Mackay and comparable regional markets.”

Mr Mete added: “Mackay has firmly established itself as one of Queensland’s premier regional industrial hubs, underpinning the resource-rich Bowen Basin and the broader Central Queensland economy.

“Its strategic access to key export infrastructure supports a diverse mix of industries, from large-scale agriculture through to hard commodities, particularly metallurgical coal essential to global steel production.

“With industrial land and buildings tightly held and increasingly scarce, assets within this precinct are highly sought after.

“The property at 33–41 Diesel Drive is ideally positioned in the core of Paget, placing it at the heart of this tightly constrained and strategically significant industrial market.”