This article was written by Asa Anderson, originally published by The Courier Mail on July 27, 2022. It is reproduced here in full without amendment with thanks to The Courier Mail.
With the industrial property market now in hot demand, a Brisbane investment fund didn’t think twice when a property popped up on the Sunshine Coast.
A Brisbane investment fund has snatched up a $20m prime site in an industrial hotspot on the Sunshine Coast as the commercial property market hits an all-time high.
Trilogy Funds bought the tenanted property, including offices and warehousing, at 6 Ron Parkinson Crescent, Corbould Park for $20.6m on June 10, 2022.
Existing tenant The Civilmart Group – a national precast concrete manufacturer – signed an initial 10-year lease.
Trilogy Funds’ head of lending and property assets Clinton Arentz said his fund bought the property because it was a good fit for its property portfolio with the industrial sector and property market in hot demand.
“We’ve never seen a stronger demand for industrial property,” he said.
Property at 6 Ron Parkinson Crescent, Corbould Park. Picture: Supplied
He said demand was partly backed by the economy strengthening and a recent trend of businesses wanting to move their manufacturing onshore following global supply chain issues.
“[They want] to smooth out those supply chains,” he said.
Mr Arentz said the existing tenant was also strong given it was part of an “essential” and in-demand sector with construction activity going “gangbusters” in Australia.
Civilmart has been on the site for about five years after acquiring Sunshine Coast-based precast concrete manufacturer Tellam Civil Products in 2017.
Sunshine Coast real estate agency Colliers handled the transaction between Trilogy Funds and Victoria-based investment firm Citywest Corp Pty Ltd.
Real estate agent David Brisk said the seller was interested in selling because industrial properties were booming in price during and after the pandemic.
He said the industrial market had “aggressively” increased in price in the past 12 to 24 months given it was a secure and in-demand sector, with this sale attracting more than 100 enquiries and six offers.
“This is the strongest we have ever seen the industrial market,” he said.