Over 150 Qualified Buyer Enquiries

Gold Coast industrial properties are continuing to draw the attention of savvy cashed up investors with two multi-million dollar freehold sites selling via separate auction campaigns. Both properties were marketed by Josh Wright, Director at Crew Commercial.

20 Central Park Avenue was offered for auction with an existing tenant in place returning $140,000 plus outgoings plus GST pa. The Ashmore property had a long term lease in place to compounding chemist Acpharm for an eight year initial term plus options.

“The lease commenced in September 2022 after the tenant was granted a rent free period to conduct their own fitout”, said Mr Wright.

The campaign garnered 84 enquiries with five interstate investors choosing to bid via telephone. The property initially passed in at auction with the site selling the following day for $2,500,000 (no GST applicable) to the highest bidder from the auction.

“The seller selected the offer that had the cleanest terms which is certainly a trend we are seeing more of. Sellers are reluctant to tie a property up subject to finance while there are still so many cash buyers in the market.”

Focus then shifted to the sale of 34 Export Drive in Molendinar. The property had a land area of 1,541sqm with a building of 826sqm plus a large awning over the car park area. A lease was in place over the property to trailer sales business Stonegate Industries returning $114,577 plus outgoings plus GST pa.

20 Central Park Avenue and 34 Export Drive were sold by Josh Wright20 Central Park Avenue and 34 Export Drive were sold by Josh Wright

The auction drew quite a crowd having achieved 99 enquiries over the four week campaign. The property sold under the hammer for $2,310,000 (no GST applicable) equating to a yield of 4.96% net.

“The local purchaser outbid other interest comfortable in the knowledge that the rent would be reviewed to market in February next year.”

“While the local industrial market is ploughing ahead with tight yields and increasing sale and rental rates, purchasers are being selective with the sites they target. They are critiquing properties based on whether the tenants truly pay all outgoings such as land tax and property management fees. In this instance the rental agreements were triple net leases. This means Crew Commercial is now acting as property managers for the sites with the tenants paying the fees involved in this. This is a nice value add for private investors and enables them to pay a little more for the site compared to properties that do not provide this benefit.

Crew Commercial continues to go from strength to strength. The locally owned and operated agency have offices in Southport and Woollongabba with their Gold Coast agents alone transacting over $74,000,000 of industrial property in just the first two months of this year.