Buyer nabs Murwillumbah police dog site for $5.1m
A PURPOSE-built Australian Federal Police dog centre at Murwillumbah that services the Gold Coast Airport has been bought for $5.1 million by a Melbourne investor.
The five-year-old property, at 46 Honeyeater Circuit, has been sold at a 6.58 per cent yield.
It was developed by Peter Mitchell, who initiated the major Industry Central estate at Murwillumbah nearly a decade ago.
Mr Mitchell sold it to Tronbridge, a company linked to Sydney investors, for $4.31 million in 2010 with a 15-year lease to the AFP in place.
The lease has 11 years to run and comes with two five-year options. Net annual income is $335,446.
The property was put on the market last month by Tronbridge through Michael Collins and Jamie Dewe, of the Brisbane office of Burgess Rawson, via a portfolio auction program in Sydney.
The single-level Murwillumbah facility was the first of nine canine facilities built under the auspices of the federally funded Project Jupiter to strengthen security at Australian airports.
Mr Mitchell was enlisted to build similar facilities for the Darwin and Cairns airports.
The Murwillumbah property is on 9474sq m and has 10 overnight kennels, two isolation kennels for sick dogs or those needing to be separated, six day-runs, a vet treatment room and agility yard.
Burgess Rawson’s Mr Collins yesterday said the sale reinforced a further strengthening of property yields given the low-interest-rate environment.
“High-net-worth individuals and self-managed super funds have to place funds in higher-yielding investments to maintain the income levels they previously enjoyed from risk-free bank term deposits. This factor alone is driving up property prices.’’