This article was written by Phil Bartsch, originally published by The Courier Mail on February 1, 2020. It is reproduced here in full without amendment.
The strength of the industrial market on the Gold Coast is prevailing with buyers swarming to secure a fully-leased industrial property in the tightly-held Carrara precinct.
The industrial property at 11 Elysium St, Carrara, has changed hands for $12.05 million.
Brisbane-based Trilogy Funds has staked a claim at Carrara on the Gold Coast after swooping on a large fully-leased industrial land holding.
The 1.64ha property at 11 Elysium Rd comprises 6180sq m of building improvements.
It was sold with a 10-year lease in place (expiring in 2027) to CPG Resources – Mineral Technologies Pty Ltd, a subsidiary of top 100 ASX-listed Downer EDI Limited.
According to CoreLogic property records, the asset was snapped up for $12.05 million — reflecting a yield of about 6.9 per cent.
The property will sit within the fund manager’s Trilogy Industrial Property Trust.
Selling agents Simon Beirne and Pat Cavanagh from Colliers International took the property to market via an expressions of interest campaign.
It previously changed hands in 2007 for $10.7 million.
“The campaign generated strong interest from investors and fund managers who were drawn to the property’s strong covenant and reputable tenant,” Mr Beirne said.
“Trilogy Funds Management were looking for investments offering strong and secure returns so they moved quickly and put forward the best offer to secure this rare opportunity.”
Pat Cavanagh from Colliers International outside the industrial facility at 11 Elysium Rd, Carrara.
Mr Cavanagh said the deal reflected the prevailing strength of the industrial market on the Gold Coast.
“The campaign attracted interstate investors who are chasing better returns in Queensland as they are being priced out of their local markets,” he said.
“Carrara is a tightly held industrial precinct which is currently experiencing great demand from construction, transport and logistics operators as well as investors.”
The Carrara property has a site coverage of about 27 per cent and comprises multiple freestanding structures, including a 1388sq m administration building over two levels with basement car park, 599sq m of laboratory/office space and a 4306sq m factory featuring workshop areas, offices, storage and amenities.
A street level carpark with 101 bays is located at the northern and central sections of the site.