Overseas expat buys Berrinba investment property for $3, 020,000 and will be collecting $226,500pa in rent

by admin | 28th October 2010

An overseas expat investor has paid $3,020,000 for a new 1,623m2 office/warehouse at 2 Prospect Place, in the up and coming Logan Link South Industrial Estate, Berrinba, and will be receiving $226,500 pa in rent from its new tenant Protech Power P/L.

A King & Co agent handled the sale, while the lease was the responsibility of Myles Clentsmith. Prolific local developer IDG was both the vendor and lessor for these deals, the former conducted off market to an existing, long term client.

The Estate is divided into 8 allotments accessed by Prospect Place and lies at the corner of Wembley Road and Pagewood Street. It’s designed to attract iconic hi-tech industries requiring profile, appearance and position. According to Clentsmith, there remains around 50ha of  Logan Link South that are in the process of being developed and should see new buildings open up for business in the near future.

Located on 2,918m2 of MIBA land, this property features 1,260m2 of highbay, freestanding warehouse, 363m2 of corner office, two electric roller doors as well as 21 carparks, two undercover. Also included is easy access  to the Logan Motorway and the M1

IDG’s Garry McNamara notes that the 7.5% yield achieved in this transaction shows that there is plenty of potential market activity for sub $5 million investment or vacant possession properties adding that sites above that number are not so lucky because possible purchasers are unable to find funding or are lacking in confidence. As to the lease, he says that this shows the market is accepting the new Land Tax laws that  allow related lessor costs to be passes onto tenants.

The tenant is a 13 year old firm that provides installation services countrywide to high energy users like mines, sugar mills and power stations and has clients such as Energex, Power Link and Daewoo. While based in Brisbane, it has a large workshop in Townsville and is soon to open an office in Sydney.

According to a Protech Power representative, we are  relocating from Eagle Farm  as part of an expansion decision, and to get away from that suburb’s horrendous traffic congestion adding that they were very attracted to Berrinba’s proximity to major arterials.

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