The multi-tenanted industrial facility in Brisbane’s southwest has sold for $10.4 million as the industrial market continues to demonstrate strength despite the challenges of COVID-19.

The property at 63 Tile Street in Wacol has a total gross floor area of 7,809sq m spread across three quality buildings on a 16,187sq m site providing 619sq m of corporate grade office accommodation, 7,190sq m of high functional high-bay warehouse space and an excellent hardstand area with drive around and drive through capability.

Deal at a glance:

• Sold Price: $10.4 m
• Asset Address: 63 Tile Street Wacol Brisbane Queensland.
• Purchaser: GM Property 
• Vendor: Private 
• Yield: circa 6%
• Wale: 1.07 years 
• Tenant: Multi 
• Land area: 16,187sqm
• Gross Floor Area: 7,809sqm
• Agents: Mark Clifford and Ned Jeffries Knight Frank
• Source: Knight Frank 

It was purchased by GM Property from a private vendor in a deal negotiated by Mark Clifford and Ned Jefferies of Knight Frank following an expressions of interest campaign for the property.

Mr Clifford said the yield was circa 6% and with short team leases across the three buildings, the WALE was 1.07 years but the investment had plenty of positives to attract potential buyers.

“The expressions of interest campaign attracted strong offers from both local and interstate investors,” he said.

“The location, quality of the assets and future upside reflected a superb opportunity.

“Wacol, just 17 kilometres from the Brisbane CBD, appeals to tenants due to its close proximity to the Centenary and Logan Motorway, and the Ipswich/Logan Motorway intersections, which affords the property efficient linkages to not only the city, but the Port of Brisbane and Brisbane Airport.

“The three separate buildings allow for multiple and flexible tenancies, and the purchaser can potentially restructure and renegotiate the leases in place to capitalise on rental upside and create a stronger income returning property.”

Current tenants of the industrial facility include Inguz Harvest (OneHarvest), Queensland Tissue Products and Southern Sheet and Coil.

Mr Clifford said the investment opportunity was attractive to buyers still looking to be active in 2020.

“Mutli-tenant, flexible assets of this calibre and in the tightly-held suburb of Wacol and the broader South West industrial precinct are rarely offered to the market, so it appealed to investors,” he said.

“We have seen lower sales activity in Brisbane’s industrial investment market this year due to COVID- 19, but as an asset class industrial property has been the most resilient in the commercial market and remains in demand.

“Investors are being drawn to the industrial sector due to the relative resilience of tenants.

“Sales activity is starting to return now, particularly in the $5 million to $25 million price bracket, and we expect 2021 to be busier as confidence continues to grow.”