Neta Tire Service and Sales has taken advantage of Brisbane’s tight industrial market after selling an industrial property spanning two titles in Northgate, Brisbane for $8.8 million.
The industrial facility comprised 9,403 sqm of land and 5,218 sqm of improvements, including masonry and metal clad office/warehouse facilities.
The properties were situated at 87 Old Toombul Road and 12 Spiers Street in Northgate – about 14 kilometres north of the Brisbane CBD.
Knight Frank’s Paul Anderson and Andrew Doyle, in conjunction with David Fielding and Dani Conn of Castle Property Group, negotiated the sale to a private local investor.
“The sites offered an exceptional value-add opportunity to the purchaser, which was a strong drawcard in the current market,” Anderson said.
“The successful purchaser intends to renovate the existing facilities at lease expiration and offer as refurbished leasing product.”
Doyle said the property enjoyed three street frontages to Old Toombul Road, and Spiers and Hungerford Streets, providing scope for parties to drive through, especially if some of the built form was reconfigured.
“Industrial leasing stock in the current market is also very tight, so we expect the renovated project to be received very well by potential tenants upon completion,” Doyle said.
“It also offers huge flexibility with the leasing strategy, with the potential for multiple tenants.”
Under the deal, the two titles were sold in one with a 12-month lease back to the buyer at a rate of $440,000 per annum net plus GST, equating to an initial yield of 5%.
Northgate is a prime industrial location in Brisbane due to its proximity to Brisbane Airport, access to the Gateway Motorway and tunnel network.
Recent industrial deals in Brisbane include Centennial and MaxCap Group’s purchase of three adjoining sites in Willawong for $14.35 million in August, with plans to build a $90 million industrial park.
Recent research showed that Australia will need an additional 1,800,000 sqm of industrial and logistics space over the next five years to accommodate the forecast growth of online shopping.