Sentinel secures $9.6m property
SENTINEL Property Group has acquired a major industrial investment in Crestmead, south of Brisbane, for $9.6 million.
The office/warehouse in the Crestmead Industrial Estate at 116 Magnesium Drive, which is fully leased to a national manufacturing company, was purchased in a sale negotiated by CBRE’s Jack Pershouse and Ed Bull.
Sentinel managing director Warren Ebert said the 6159sq m facility on a substantial site area of 16,210sq m was the eighth addition to the Sentinel Industrial Trust, which also holds properties at Pinkenba and Oxley in Brisbane, Canning Vale in Perth, Paget in Mackay, Garbutt in Townsville, Mayfield in Newcastle and Tuggerah on the NSW Central Coast.
Mr Ebert said the Crestmead asset was Sentinel’s first acquisition for 2018 and followed a busy 2017, in which a total of 15 transactions were completed, representing $459.3 million in value through $246.9 million in sales and $212.4 million in acquisitions.
“Sentinel has been active over the past year as both a buyer and a seller and we have been working to achieve fantastic results for our investors,” he said.
“This Crestmead property is being purchased at a passing initial yield of 8.82 per cent, which is significantly above other industrial transactions.
“The passing net income of $846,323 per annum equates to approximately $137 per sqm. There is also an opportunity to strata title the site into three separate lots.”
The facility is the headquarters for Oxworks, a well-established manufacturer and seller of fencing, gates, screens and balustrades with eight store locations nationwide. Oxworks has a 10+5 year lease in place.
Crestmead is approximately 24 km south of the Brisbane CBD, with excellent access to South East Queensland’s major arterial links such as the Logan, Pacific and Gateway Motorways.
The Crestmead Industrial Estate has recently seen the release of its final stage.
Major businesses situated in the area include Metcash, Stratco, John Deere and Titan Garages.
‘‘ THIS CRESTMEAD PROPERTY IS BEING PURCHASED AT A PASSING INITIAL YIELD OF 8.82 PER CENT, WHICH IS SIGNIFICANTLY ABOVE OTHER INDUSTRIAL TRANSACTIONS.