A freestanding property in Burleigh Heads has sold for $4,500,000 ex GST prior to auction.
10A Alex Fisher Drive consists of 1,999sqm building on 4,565sqm land and has been sold via a campaign handled by Sean O’Connor and Josh Wright from Cushman & Wakefield.
The property is tenanted by BuyRite Steel Supplies (Qld) Pty Ltd who have occupied the property since it was first built in 2005. The site was originally marketed with a seven year lease returning $318,500 plus outgoings plus GST pa, but pre-auction negotiations resulted in a new lease being agreed at $270,000 plus outgoings plus GST pa on a ten year term. The $4,500,000 sale price equates to a return of 6.0%.
“This is a tight yield that reflects the quality of the holding and the strength of the covenant”, said Associate Director Josh Wright. “We received 37 qualified enquiries for the site with the purchaser being a private investor from Brisbane”.
Sean O'Connor, who specialises in industrial properties across southern Gold Coast, regards the sale as unprecedented. "For Burleigh Head's industrial market, the yield is record-breaking. We achieved a solid sales rate ($2,250 /sqm) and, for freestanding buildings in the estate, the lease we negotiated sets a new benchmark".
"Under normal circumstances this result would be outstanding, but to occur amidst a global pandemic is extraordinary. It goes to show yet again the underlying resilience and strength of the Burleigh and Gold Coast industrial market", he says.
The property benefits from :
- Clear span warehouse with 12m internal clearance
- Three container height automatic roller doors
- 5 tonne Demag gantry crane
- Corporate grade air-conditioned offices over two levels
- Three phase power
- Fully secure and gated site with two driveways
- Just 1km to the M1 Pacific Motorway
The sale demonstrates the strong demand currently fueling the Gold Coast industrial market.
“Cushman & Wakefield has transacted over 80 industrial properties on the Gold Coast so far this calendar year,” said Mr Wright. “The low interest rate environment together with the current government support is fueling sales across the Gold Coast industrial market. In this particular instance the Vendors capitalised on the strong demand by selling at a high price at the same time as securing the premises for their long term future. We expect other local companies to consider doing the same”.
