Industrial site sale proof GFC rebound is complete
A MULTI-BUILDING industrial facility on the Gold Coast that was sold three years ago for $3.65 million has just been flipped for a multi-million-dollar profit.
The recently settled deal at Molendinar reflects the strong demand for assets in the city’s industrial market, which has bounced back to pre-GFC levels over the past few years.
Pipeline and civil engineering specialist NTS Group has snapped up the facility at 31 Activity Cres.
It was initially taken to market as a fully leased asset but NTS Group negotiated a vacant possession deal — involving the relocation of existing tenants — so it could occupy the entire 1.22ha holding.
All parties involved were tight-lipped about the price but according to industry sources, it is believed to be at least $2 million higher than what the previous owner — an entity linked to Alder Constructions founder Greg Alder — paid for it in early 2014.
NTS Group has expanded from a nearby facility at Industrial Ave, which it plans to retain and lease out.
The Activity Cres facility comprises three buildings with a combined gross floor area of 6368sq m, as well as truck turnaround, drive-in and drive-out capability.
Pat Cavanagh from Colliers International, who negotiated the deal with colleague James Crawford, said: “Over the last three or four years, we’ve definitely seen a resurgence in the industrial market and capital values — it’s got back to preGFC levels.”
Mr Crawford said the property attracted strong interest, with about 40 inquiries fielded, including from interstate private investors, syndicators and small fund managers.
“The sale demonstrates the strength of the owner-occupier market on the Gold Coast,” he said.