Key buy at Crestmead

A LEADING local syndicate has added to its industrial trust with the acquisition of an office/warehouse south of Brisbane.

Sentinel Property Group paid $9.6 million for the asset at 116 Magnesium Drive in the Crestmead Industrial Estate, through CBRE’s Jack Perhouse and Ed Bull.

Sentinel managing director Warren Ebert said the 6159sq m office/warehouse on a 1.62ha site was the eighth addition to the Sentinel Industrial Trust.

Mr Ebert said the Crestmead property was Sentinel’s first acquisition for 2018 and follows 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.

“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/sq m. There is also an opportunity to strata title the site into three separate lots.”

The property is the headquarters for Oxworks, a wellestablished manufacturer and seller of fencing, gates, screens and balustrades. The company has a 10-year lease with an option.