A Brisbane office and warehouse facility in the TradeCoast Central precinct has sold for $16.5 million, with Ultra Labels Pty Ltd to remain in occupation under a long-term leaseback arrangement.
The A-grade asset at 65 Backhouse Place, Eagle Farm, was purchased by a private investor on an initial yield of 5.45 per cent.
The facility comprises 2,793 square metres of gross lettable area on a 5,914 square metre site within TradeCoast Central.
The property has a 15-year initial lease term, with two five-year options, and a commencing net income of $900,000 per annum.
The site is located near the Gateway Motorway, Brisbane Airport and the Port of Brisbane.
Knight Frank’s Elliot Ryan says the transaction drew interest from investors seeking long-leased industrial assets.
“Investor appetite for core industrial assets in TradeCoast Central remains extremely strong, particularly where there is income security underpinned by a long WALE and a high-quality covenant,” says Elliot.
“Opportunities of this calibre are increasingly rare. The combination of a modern facility, recent warehouse expansion, and a long-term leaseback to an established national business resonated strongly with investors seeking defensive, long-duration income. This is reflected by the rate per square metre achieved of $5,908.”
Ben says the result reflects activity in Brisbane’s Trade Coast industrial market.
“TradeCoast Central is widely regarded as Queensland’s premier industrial and logistics precinct,” says Ben.
“With its proximity to major freight infrastructure and limited supply of institutional-grade assets, investor competition for well-leased opportunities continues to intensify.
“This sale demonstrates ongoing confidence in the precinct and the long-term fundamentals of Brisbane’s industrial market.”
