YIELD CHASE IN GROWTH REGION

A FULLY-leased office building at Springwood, south of Brisbane, has been swooped on by a yield-chasing interstate buyer.

The Sydney-based private investor has paid $4.22 million for the property at 8 Cinderella Dve.

It comprises a near new threelevel building – constructed in 2018 – with a net lettable area of 838sq m on a 808sq m site.

The asset was sold 94 per cent occupied by Invest Logan, a subsidiary of Logan City Council, with the remaining space leased to a local developer.

It has a weighted average lease expiry (WALE) of 3.56 years.

Daniel Pepper and Gregory Woods from Savills struck the deal on a yield of 6.99 per cent.

“With all the uncertainty at the moment I think a lot of people are just looking for solid buildings to invest in with good tenant profiles,’ Mr Pepper said. “Compared to the stockmarket, property is very much a safe investment and yields will probably tighten on the back of all this.”

Mr Pepper said the buyer of the Springwood asset moved quickly to secure it and agreed terms a week before the close of the expressions of interest campaign.

“They were purely chasing yield but also looking for strong covenants, so Invest Logan fitted their investment mandate,” he said.

“Obviously, Springwood – given all the works going on there – is also a key growth corridor.”

The property, which also features 17 undercover car parks, generates a rental return of just over $295,000 a year net plus GST.