REINVESTING WORKS OUT
IT is a case of invest in property and the tenants will come, according to Colliers International which has attracted national plumbing group Samios to a large Garbutt industrial complex.
The premises at 14 Hills St is also home to multinational fastener supplier Buildex and now the whole fully leased investment property has been put on the market for sale.
The modern industrial complex comprises two warehouses on 1.1ha of land, including a concreted area of 7300sq m.
Showing a net annual rental return of $ 281,474, the vendors are seeking an offer around $ 3.5 million, which would represent a handy 8 per cent plus return for buyers.
Colliers executive James Pascoe said owners were sometimes reluctant to reinvest in sites to maintain a prop- erty’s appeal without certainty of a ready client.
But in this case, he believed the owner had done the right thing to reinvest in the property.
“Too many properties are not kept up to standard so they don’t present well or they are not suited to national tenant leasing requirements,” Mr Pascoe said.
“It is relatively easy to improve an industrial facility without a tenant secured by the spending money on the nonspecific things all tenants want and being ready to complete more specific items quickly with quotes in hand.”
Mr Pascoe said the premises Samios had leased, previously the home of Carlton United Breweries, was significantly upgraded and extended in 2015.
Samios has taken a lease for five years and nine months with a further five- year option on the 977sq m warehouse.
A 1500sq m concrete tilt panel warehouse leased to Buildex for three years with two further three- year options was developed in 2006.
Samios has just relocated into Garbutt complex and is making some big investments of its own.
Samios Queensland general manager David McDonald said the firm would develop a new showroom in the building with an opening planned for early next year.
Mr McDonald said he felt the new location provided more profile and was more central for the customer base.
“We have a sister business in Sherriff Electrical which is around the corner,” Mr McDonald said.
Samios Plumbing Supplies services trade and retail customers and is part of the privately owned BGW Group which employs 1000 people in 100 plus locations throughout Australia and South- East Asia.