A Beenleigh industrial property that was withdrawn from the market as the uncertainty of Covid-19 took hold has sold four years later at a 55% premium.

The 12,154sqm property across 5-7 and 9-15 Thorsborne Street recently changed hands for the first time in almost 25 years at $8.55m in a deal facilitated by LJ Hooker Commercial Brisbane’s Ben Armstrong and John Barter. The sale reflected a 6.7% net yield.

When previously marketed in January 2020, the sellers received offers of $5.5m. However, with the economic and legislative uncertainty of Covid playing out, the New Zealand-based sellers decided to withdraw the property from the market.

“The sale reflects the strength and resilience of industrial property in Brisbane over the last four years,” said Mr Barter.

"Though the market had shifted considerably, the buyer identified the property as under-capitalised with the potential for future development to enhance its value.

“It’s centrally located within the Beenleigh industrial precinct, offering efficient access to the M1 with Brisbane only 30 minutes to the north, while the Yatala Enterprise Centre is less than 10 minutes to the south.”

The combined 1.2ha site is leased by two separate tenants: German-based scaffold manufacturer PERI has three years remaining on its lease over 9-15 Thorsborne (8,093sqm) while Fortress Collision Repair Group has signed a new five-year lease over neighbouring 5-7 Thorsborne (4,061sqm). Collectively, the tenancies generate a total net income of $579,584 per annum.

Mr Armstrong said the property’s improvements, expansive hardstand and connectivity had made it a sought-after address for tenants.

“In the 25 years the previous owners had held the site, only one of the properties has spent time vacant, and that was for only four months,” said Mr Amstrong.

Industrial yields south of Brisbane were averaging between 6%-7% said Mr Armstrong.

“While there’s talk of the industrial market slowing down in terms of growth, Queensland’s ongoing population growth and the 2032 Olympic and Paralympic Games will bolster demand for factories and warehouses amongst manufacturers, and construction and logistics companies,” said Mr Armstrong.

“There’s not enough stock coming to the market.”