Sentinel Property Group purchased two tenanted facilities in Mackay for $12.77 million to add to its $270 million industrial portfolio.
Despite an uncertain property market, the Brisbane-based group continued to strengthen its foothold in the mining region which only had 15 recorded Covid-19 cases as Queensland’s total number of cases hit zero for the first time since February.
Sentinel has invested approximately $100 million in the Mackay region, including the latest purchases $8.3 million for a 9,538sq m site at 56-68 Maggiolo Drive and $4.47 million for a 9,170sq m block at 23-25 Michelmore Street.
Mackay Regional Council reported a gross regional product of $8.623 billion, representing a 68 per cent increase since the beginning of the decade.
Sentinel managing director Warren Ebert said the mining in the resource rich Mackay region would continue to flourish with the Queensland government reliant on the sector to keep the economy going through Covid-19.
“Mining continues to be an essential business for Queensland. I expect the mining industry will play a major role in driving Queensland’s economy through these difficult economic times.”
“Mackay is the regional centre for the Bowen and Galilee Basin coal deposits and Mackay’s Dalrymple Bay Coal Terminal is the largest in Queensland by volume,” Ebert said.
“The regional city has benefited from a sustained improvement in commodity prices, particularly coal, and is expected to be one of the key beneficiaries of Adani’s Carmichael Project. Mackay’s residential property market has improved strongly in line with increased mining activity. ”
The Maggiolo Drive property, purchased from a private seller through Gary Hyland of JLL for a yield of 8.13 per cent, incorporates three freestanding buildings with gross lettable area of 3,188sq m.
The facility is leased to Nepean Longwall Pty Ltd, a subsidiary within the mining division of Nepean, on a new five-year term expiring April, 2025.
The Michelmore Street asset is leased to PBE Group, a global provider of power equipment, communication services, data and safety solutions.
The property, which includes a concrete tilt panel industrial workshop with offices and hardstand area, was purchased from a private vendor through Col Wilson and Des Besanko of Raine and Horne Mackay for an initial yield of 8.5 per cent.
Sentinel also recently obtained approval for the development of a 2,000sq m industrial workshop plus office and hardstand at 40 Gateway Drive, Paget, with completion expected in October, 2020.