Oz Prop goes in cold
Purchase ticks all the boxes, says company
GOLD Coast rich listers Tony and Christina Quinn have offloaded a cold storage warehouse in Ormeau for $22 million to Broadbeachbased investment firm OzProp.
The 2.12ha parcel at 84 Lahrs Rd is in the Yatala Enterprise Area and hosts a 7485sq m complex, home to long-term tenant Scott’s Refrigerated Freightways.
Scott’s, a subsidiary since 2014 of ASX-listed Automotive Holdings Group, has occupied the centre since 2002 when it was purpose-built for Scott’s by Brisbane-based Property Solutions Group.
The Quinns, whose wealth was estimated at $465 million in the Australian Financial Review Rich List this year, purchased the property for $11.75 million in 2011.
OzProp managing director Michael Parker said the property, which was bought on a 8.1 per cent yield, had several attractive elements.
“The long lease tail, robust and sustainable yield, stable income to an ASX-listed tenant and the location ticks all our boxes. It is a good asset class to add to the portfolio and it will be a long-term hold for our investors,” he said.
Scott’s was founded in 1952 and supplies food and beverages to supermarkets.
It has seven years left on its lease plus options at 84 Lahrs Rd.
OzProp, founded in 2008, has completed more than $220 million in commercial property transactions and manages in excess of $135 million of property assets in various unit trust structures.
The firm has $27 million worth of property under due diligence.
The Lahrs Rd purchase is its second this year following the acquisition of the Home Central Retail Centre in Coffs Harbour for $11.75 million.
The Quinns sold their Yatala-based chilled pet food company, VIP Petfoods, for $410 million in 2015.