Ormeau facility a prime investment
AN industrial facility – home to a national steel fabrication company – in the Yatala Enterprise Area is attracting strong interest ahead of its auction next month.
The 2ha three-title property at 18-26 Lahrs Rd, Ormeau, was assembled between 2001 and 2008 by Clevebay Pty Ltd, linked to Sydney investor Ian Calvert, at a cost of $2.8 million.
Tenant Stoddard, which manufactures steel house frames and trusses from the 4469sq m factory on the property, pays $648,112 net rent per year. It has occupied the site for 17 years and recently extended its lease until 2021.
Colliers International industrial manager Daniel Coburn, who is co-marketing the property with Pat Cavanagh, said they are receiving a broad range of interest from Gold Coast, Brisbane, Sydney and Melbourne investors.
“The main attraction is the strength of the tenant. Stoddard is a well established company that has been there for a long time. The property also has access from two streets – Lahrs Rd and Notar Drive – and is 500m from exit 41 of the M1 Motorway, which is a big drawcard as well,” he said.
Mr Coburn said other features are the low site coverage at 21 per cent, offering a buyer the potential for redevelopment, and Stoddard paying the rent 12 months in advance.
He said Clevebay is selling to put its money into other ventures and take advantage of strong market conditions.
The auction will be August 15, 11am at the Colliers International Surfers Paradise office.