A Sydney fund has disposed of a core industrial asset in Yatala for $55,625,625 after committing to acquire the site on a fund through basis from Frasers during the first wave of the COVID pandemic in 2020 in an off-market transaction brokered by CG Property Groups Michael Callow and Mark Gilbride.

Situated within the Yatala Central estate the almost 28,000sqm of facilities on 63,109sqm of land was completed in September 2022 and leased to tenants TSS Freight and Bidfoods upon PC in the 18,070sqm facility whilst the stand alone 9,176sqm facility was pre-committed to Pacific Optics.

The combined sale price of the two assets reflected a yield of 5.17% on current passing with a WALE of 4.92 years.

The sale is one of the only institutional grade stabilised assets to trade in Queensland in 2023 with investment transaction volumes down significantly from the peak of 2021 and 2022 due to rising interest rate costs along with Dexus sale of 16-28 Quarry Road, Staplyton to Hines for circa $67,000,00.

Mr. Michael Callow of CG Property Group said “that whilst the broader investment market was cautious, the private purchaser saw an incredible amount of value in the improvements.”

Mr. Mark Gilbride added “the sale rate of circa $2,000psqm on gross floor area is significantly under replacement costs now with the recent and likely continuing increase in construction costs.”

“Given where we’ve seen comparable new development costs come to, to replace the improvements would be closer to $70,000,000 now so the private purchaser saw value in the opportunity.” Said Mr. Gilbride

Mr. Callow further added that “we’ve seen rents increase this year by up to 25% in all South East Queensland markets and we do see further growth in these rates over the next 18 months albeit it not as steep.’

To request a sales analysis please contact either of the selling agents CG Property Groups Michael Callow and Mark Gilbride via the below contact details. 

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