Clarence keeps on muscling up

A tenanted multi-building complex in Brisbane’s western growth corridor has changed hands with a fund manager strengthening its exposure to  the city’s industrial market. Gold Coast-based Clarence Property has snapped up the Wacol facility in a $7.655 million deal, adding further muscle to its unlisted Westlawn Property Trust.

The purchase of 42 McRoyle St includes 6424sq m of occupied space across five buildings on a prime 15,300sqm parcel of land. It brings the acquisitive fund manager’s recent investments in Brisbane industrial assets to more than $26 million. Other purchases as part of a strategic expansion of its holdings in the asset class have included an A-grade two-level office/warehouse at 48 BellAre Ave, Northgate, for $8.475 million and an industrial complex at 45 Alexandra Place, Murrarie, for $10.3 million. Clarence Property managing director Peter Fahey said the Wacol asset balances the mix of property held by Westlawn Property Trust, which has $300 million in assets including residential communities and retail centres from Yamba to Brisbane. “We see opportunity in the  Brisbane industrial market and have strategically chosen income producing assets to deliver value to our Westlawn Property Trust,” Mr Fahey said. “Wacol is at the heart of Brisbane’s western industrial corridor, where there is growing demand for ready built warehouses on small to medium lots, and consequently strong yield and potential for growth.”

The Wacol deal was brokered by King & Co’s Richard Hall through an expressions of interest campaign. Mr Hall said property funds were circling industrial sites, particularly assets that boast good connectivity. “This particular property was appealing because it comprises five buildings with seven committed tenants producing reliable rental income, as well as being close to major arterial roads that link to the Centenary Highway and Logan and Ipswich motorways,” Mr Hall said. Clarence Property’s unlisted Westlawn Property Trust currently provides a  gross distribution in excess of 8 per cent per annum.

As appeared in the Courier MailPrime Site 6th September 2019

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