Sentinel Property Group has sold a warehouse leased to a subsidiary of BlueScope Steel in the Australia TradeCoast precinct on Brisbane’s northside.
Located on a 47,880sq m site at 920-928 Nudgee Road, Banyo, the steel processing and distribution facility was leased long-term to BlueScope until 2026.
The sale was negotiated by CBRE's Ed Bull and represented a yield of around 6.70 per cent. Sentinel acquired the Banyo site in April 2011 for $23 million.
Sentinel managing director Warren Ebert noted that the group had both bought and sold industrial property in the prime TradeCoast precinct, recently
purchasing a waterfront bulk storage facility at nearby Pinkenba for $48.5 million in a leaseback arrangement with global diversified industrial chemical company Incitec Pivot.
“Our decision to sell this high performing asset is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market," Ebert said.
The average prime yields in Brisbane's industrial market now sit between 6.75 per cent and 7.25 per cent, reflecting limited on-market opportunities for quality stock.
The property comprises approximately 17,000sq m of warehouse and office space. The property is 10 kilometres from the Brisbane CBD, adjacent to the Brisbane Airport, and has direct access to the Gateway Arterial Motorway.
The facility offers opportunity for further expansion with only 36 per cent site coverage.
Brisbane-based Sentinel Property Group has a total national portfolio of more than 40 retail, industrial, office, land, tourism infrastructure and agribusiness assets across Australia, worth over $1 billion.