A recently-completed office asset at 3926 Pacific Highway Loganholme has been snapped up in an off-market deal.
Strategically positioned in the Brisbane-Gold Coast corridor, the property was purchased by Perth-based commercial property investment syndicator Properties & Pathways from a local Brisbane private investor in a $11 million sale negotiated by Matt Barker and Blake Goddard of Knight Frank.
The asset has 2,111sq m of net lettable area on a 2,023sq m site, with 60 car parks.
It is 100 per cent occupied by a range of high-quality tenants, including Brighton Homes, which operates its headquarters from the building.
It was sold with a WALE of 5.56 years, a net passing income of $727,852 and an equivalent market yield of 6.56 per cent.
The Properties & Pathways Trust was oversubscribed in 24 hours by their loyal investor base showing strong demand for their hands-on-management style, underpinned by high-quality assets.
Mr Barker said the buyer was attracted to the asset due to its long WALE and the strong covenant, particularly with Brighton Homes as a key tenant.
“The long-term secure income stream will provide Properties & Pathways with solid distributions to their investors,” he said.
“The asset is also a near-new building, with a 5 Star NABERS Energy rating, which means the incoming owner will have no capital expenditure required.
“The location was also a drawcard, with the property being strategically situated between Brisbane and the Gold Coast.”
The 3926 Pacific Highway Loganholme site is located approximately 29 kilometres south east of the Brisbane CBD near the Logan Motorway intersection.
Mr Goddard said investor demand was strong for quality properties, but opportunities were increasingly difficult to come by, which is why the deal had taken place off-market.
“There’s a lack of stock of fully leased office buildings in the Brisbane suburban office market for sale,” he said.
“Investors are looking further afield, including the Brisbane-Gold Coast corridor where there is plenty of growth.
“They are also looking for properties that may not be advertised on the market but identifying solid investments and approaching vendors to see if they are open to selling.”