Ormeau attracts buyers

SOUTHERN-BASED investors chasing income have snapped up two industrial properties south of Brisbane for almost $14 million.

A Melbourne-based investment group paid $10.25 million for an office/warehouse at 100 Lahrs Rd, Ormeau, and another southern group late last year paid $3.5 million for an industrial property at 93 Lahrs Rd in deals struck by Colliers International’s Adam Wills.

Fully tenanted on longterm leases, the transactions realised yields of around 7 per cent.

Mr Wills said there has been strong activity in the Yalata precinct in the past 18 months.

“There’s not a lot of stock around.so if you find something with a decent building with a half decent WALE (weighted average lease expiry) there will be a good appetite for it,” he said.

According to CoreLogic the 7742sq m 100 Lahrs Rd property on a 1.58ha site last changed hands in 2013 for $10.25 million.

GKM Logistics which is part of the WA-based Citi Logistics, has leased the property until 2023 with fixed rental increases.

The 2180sq m office/warehouse at 93 Lahrs Rd is on a 5000sq m site and is leased until 2025.

Mr Wills said southern investors remain a strong presence in the industrial market.

“While our yields have tightened over the past couple of years southern investors are still coming up because of a lack of stock and yields down there are very tight,” he said.