CBRE says Sydney-based investment group CGD Capital has purchased its first industrial facility in Brisbane for $3.65 million.
It notes the 21 Fulcrum Street Richlands site is 2983 sqm and features a freestanding and functional 2133 sqm warehouse that is currently home to BruderX, an expedition trailer manufacturer.
The investment management firm’s Jack Sherrie and Sean Skeffington brokered the transaction on behalf of the private vendor.
“The investor saw immense value in the property due to its current lease term, and Brisbane’s rising industrial rents,” Jack says.
“During CGD Capital’s search for a site, they found that securing an A-grade facility in prominent Brisbane industrial suburbs with a near-6 per cent return is next-to impossible,” he adds.
“They changed their strategy and were open to different avenues to acquire their requirement, even if that meant taking on some leasing risk.”
CBRE says the transaction represents a yield of 4.38 per cent on BruderX’s current lease, which runs through to July 2025.
It adds that the property is within a prominent industrial hub in Brisbane’s outer south-western suburbs, near the junction of the Ipswich Motorway and Centenary Highway.
“High-grade investment stock in the west is currently scarce, and incoming investors are having to look at different approaches to acquire assets with decent returns,” Sean says.
“Investors are looking at under-rented assets, with the foresight to gain a significant rental increase in the long run.”
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