Fund management company Irongate Group (IAP) has entered into a contract to acquire a Queensland industrial facility for for $24.75m.
Located at 153 Main Beach Road, Pinkenba, the 1852 sqm property is home to office and warehouse accommodation, with an additional 33,615 square metres of high-quality hardstand.
Online retail and auction company Grays Australia currently have a lease on the property, which is due to expire in March 2028 – it is also fixed at annual escalations of 3.5 per cent.
The purchase price represents an initial yield of 5.3 per cent and will be funded through IAP’s existing syndicated debt facility.
Irongate Group chief executive Graeme Katz said the property provides the company with a strategic land holding of almost four hectares in the Australian Trade Coast Precinct.
“Pinkenba is immediately adjacent to Brisbane Airport and the area will benefit from infrastructure upgrades associated with the new Brisbane International Cruise Terminal,” he said.
“We believe the Brisbane industrial sector currently offers relative value and the acquisition will increase IAP’s exposure to industrial property to 32 per cent by both income and value,” he added.
The acquisition is expected to settle on March 22, 2021.
As of September 30, Irongate had 30 properties in its portfolio, which have an estimated worth of $1,100,000,000.
The fund management company said its focus was on constructing a property portfolio containing strategically located industrial properties providing longer term sustainable income returns and retail properties with the opportunity to unlock value located in growth corridors.
Irongate also invest in suburban office properties located in close proximity to key infrastructure such as main arterial roads and railway stations with affordable occupancy costs for tenants and CBD office properties in select markets with the opportunity to enhance income and/or capital value through active asset management.
At the time of writing, Irongate Group closed 1.18 per cent in the red, to trade at $1.26 per share.