The Perth-based GM Property Group has made its first foray into Queensland with a $9.1 million industrial acquisition in Murarrie.
Ed Bull, director of CBRE’s Queensland Industrial Group, negotiated the sale of the strategically located site in conjunction with Wright Property Group.
The 33 Queensport Road South property is situated with the Australian Trade Coast precinct and is adjacent to the Murrarie Train Station.
It provides an existing income of $973,769 per annum but also offers longer term potential redevelopment opportunities, subject to the relevant planning approvals.
The acquisition further expands the geographic reach of GM Property Group - a boutique property investment and development firm that facilitates direct property investment on behalf of a network of high net worth investors.
Over the past three years, GMPG has grown its investment portfolio to $100 million, with Murarrie being its third industrial acquisition for 2015.
“GMPG focuses on secondary industrial property in prime infill industrial locations with sounds fundamentals,” GMPG Director, Blair Gerrard, said.
“This purchase fits within the GMPG criteria of prime location, a purchase price close to land value, high yielding with older style functional improvements and numerous value-add angles, with higher and better uses down the track.”
The Murrarie property was acquired from a local private investor following a recent Expressions of Interest campaign.
It delivers GMPG a significant landholding, comprising of 32,560sqm of freehold land and 6,190sqm of leasehold land owned by Queensland Rail.
Formerly a Swires ColdStores facility, the property is currently utilised for warehousing and distribution. It includes three main buildings and two ancillary buildings, providing a total gross floor area of 12,370sqm.
Mr Bull said the site’s strategic location had been a key draw card as had the property’s future development potential and income stream“The property provides significant future upside and the possibility of a higher and better use, subject to the relevant planning approvals,” Mr Bull said.
“In the interim, it provides a foothold in an industrial hub that is sought after by users seeking affordable rents in a location close to both the Port of Brisbane and the domestic and international airport terminals.”
The property is currently 100% occupied by a range of tenants, including Jewl Transport and ACT Logistics.
Based on the current income, the property was transacted on an initial yield of 9.42%.