Buyer snaps up Yatala site

A GLADSTONE investor has bought a tenanted Yatala property for $2.35 million.

The 3-4 Kaycee Place property was sold by Burwood, which bought the property for $252,000 in 1995.

It has been occupied by K.C. Farm Equipment for the past 15 years.

Cushman & Wakefield agent Dave Kertesz, who marketed the property with colleague Scott Dalton, said the tenant had one-and-a-half years remaining on the lease. He said the buyer negotiated a lease extension to 2024 and an increase in net annual rent to $175,000.

Mr Kertesz said the investor was attracted to the development potential of the 9171sq m site, which features a 1360sq m building.

“It has such a low site coverage that there is the opportunity to build another facility in the future,” he said.

Mr Kertesz said the 7.44 per cent yield is sharp given the age of the building.

“The sale is a sign of the strong demand for large sites in the Yatala area,” he said. “Opportunities like this are hard to find.”

K.C. Farm Equipment, which has another branch in Lismore, sells a range of equipment and vehicles including mowers, utility vehicles, tractors and excavators, for the agriculture, residential and commercial sectors.