Fund-through deal for Logan site
A FUND-through deal on a pre-committed industrial development south of Brisbane has given a boost to the portfolio of a Gold Coast-based private investor.
The purpose-built facility at Crestmead is leased to Australian Access Hire (AAH) — a company specialising in elevated work platforms — for its new Queensland headquarters.
It was snapped up for $2.77 million within two weeks of AAH pre-committing to the design and construct project, reflecting a yield of 6.75 per cent.
AAH has relocated to the recently-completed 1325sq m office/warehouse at 78-80 Platinum St from a smaller facility at Willawong. It has signed up for a lease term of five years and four months plus options.
Cushman & Wakefield’s Corbin Crane, who negotiated the lease and sale, said the deals showed the prevailing strong demand for properties from both tenants and buyers.
“The tenant was looking around for close to two years for a new building to lease, without any luck,” he said.
“Nothing existing suited their requirement and so we introduced a developer to them to design and construct a building and see what that may cost rental-wise.
“We secured the 4982sq m site at Crestmead and negotiated the lease prior to going unconditional on the land sale.
“From there, we also managed to onsell the property, as a fund-through, prior to the land sale settling and construction commencing.”
AAH state manager Luke Castricum said the business had outgrown its previous premises and the new facility would cater for future growth of the company’s Queensland operations.
“In the last couple of years we’ve had about a 50 per cent expansion to our business in terms of our fleet ... driven by the needs of our customers,’ he said. “We’d been looking for a property for quite some time ... then it was suggested we could look at finding someone to build something for us.”