A Crestmead industrial facility tenanted by Kennards Hire has been acquired by Queensland based investor Guardian Ait Pty for $6.96 million, resulting in a 6.03 per cent yield - a record for the area.
Queensland-based investor Guardian Ait Pty has acquired a Crestmead industrial facility for $6.9 million, delivering an area-record yield of 6.03 per cent.
The 2.2 hectare site at 35 Magnesium Drive features a 1,858 square metre A-Grade industrial facility with office, wash bays and servicing bays.
The tenant, Kennards Hire, is Australia’s biggest family-owned supplier of hire equipment with over 180 branches across Australia and New Zealand.
At a glance:
The company's 15-year initial lease term commenced upon settlement of the property.
An Expression of Interest campaign conducted by Nick Evans from Colliers International generated over 70 enquiries, attracting small industrial funds and syndicators, as well as high net worth privates.
“This was a great offering that attracted a lot of investors due to the lease tenure of 15 years which is rare to see on-market," Mr Evans said.
“Of the six offers we received, Guardian AIT came through as a cash buyer who recognised the value in this long-term investment and put forward the cleanest terms and the highest offer to beat the competition.
“Another fact that attracted the investors is that Kennards Hire plans to spend $500,000 on improving the site through upgraded hardstand, office refurbishment and cosmetic modifications.
“The low site cover property offered suited Kennards Hire as they require a lot of storage space outside for the equipment.
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