HOPES FUNDS ARE WELL EMPLOYED IN BEENLEIGH
A Gold Coast buyer has snapped up a fully leased employment and services hub for $13 million after it secured anchor tenant Centrelink to a 10-year deal.
ONE of the largest employment services and education hubs in southeast Queensland has been snapped up after anchor tenant Centrelink secured a 10-year lease.
A Gold Coast-based investor paid $13 million for the Beenleigh Centrelink at 12 Stockyard Lane, in the town south of Brisbane, after an expressions of interest campaign by Cushman & Wakefield’s Morgan Ruig and Andrew Gard on behalf of Wellington Capital.
Mr Ruig said they had tried to “push around” the property at a time when Centrelink had only two years left on its lease.
“We were struggling to get to the number that the owner wanted to achieve but Centrelink exercised its option for a further 10 years which represented 44 per cent of property’s total income,” he said.
“We ended up getting enormous inquiry throughout the campaign and got six strong offers at the close.
“We found the 10-year lease to Centrelink reads really well and that style of business suits Beenleigh really well given the socio-economic situation in that part of the world.”
The property had a 5.33-year weighted average lease expiry and is 100 per cent leased with several other national and international education and employment providers filling the balance.
It has a net lettable area of 2832sq m and is on a 7249sq m site with 85 car spaces and is near a train station and the Beenleigh Marketplace. The sale realised a 8.58 per cent yield.
Mr Gard said the campaign sparked interest from funds, private investors and syndicators from across the country.
“The Centrelink tenancy was a big factor but I also think that because it’s halfway between Brisbane and the Gold Coast was important,” he said.
“We will continue to see more development in the precinct given its location between the two major cities.”