Zupps buys on M1
ZUPP Property Group has forked out $8 million for a major industrial asset in Ormeau.
The company, headed by chief executive Neil Ferguson, has bought 18-26 Lahrs Rd from Clevebay Pty Ltd, linked to Sydney investor Ian Calvert.
The 2ha three-title property was assembled between 2001 and 2008 at a cost of $2.8 million. Tenant Stoddard, which manufactures steel house frames and trusses, operates from a 4469sq m factory on the property and pays $648,112 net rent per year.
It has occupied the site for 17 years and recently extended its lease until 2021.
Colliers International’s Pat Cavanagh and Daniel Coburn negotiated the sale.
Mr Coburn said the marketing campaign attracted more than 60 inquiries from local and interstate investors.
“Interstate investors, particularly from Sydney and Melbourne, have been targeting investment stock in recent times, as the yields continue to compress in the southern states, making southeast Queensland an attractive proposition,” he said.
Mr Cavanagh said another aspect attractive to the purchaser was the future redevelopment potential.
Zupp Property Group general manager Todd McGuire said the acquisition was a good strategic fit for the company.
“Ormeau has flown under the radar until recently,” he said. “We like the area and are committed to increasing our presence here with planning well underway for new commercial buildings to complement our existing facilities at 270 Lahrs Rd.”
Mr Coburn said that the Yatala Enterprise Area (YEA), which encompasses the suburbs of Yatala, Ormeau and Stapylton, was experiencing strong interest from investors looking to acquire assets between Brisbane and the Gold Coast.
“Investors have been converging on the market, reinforced by the limited industrial land supply throughout the Gold Coast’s central industrial precincts.”