The Irongate Group has announced it has entered into agreements to acquire two industrial facilities in Brisbane, Australia.
The first industrial facility to be constructed is located at 57 – 83 Mudgee Steet, Kingston QLD and the second to be constructed at Lot 24, Dunhill Crescent, Morningside QLD. Both properties are to be acquired on a fund through basis. The purchase price of the Kingston property is $14 320 000 representing an initial yield of 5.73% and the purchase price of the Morningside property is $5 932 000 which represents an initial yield of 6.02%.
“The Kingston property will comprise of two brand new high quality generic warehouse and distribution facilities with 2 270m2 leased to Construction Sciences for ten years with fixed annual escalations of 2.5% and 3 250m2 leased to Waco Kwikform for eight years with fixed annual escalations of 3.0%” commented IAP CEO, Graeme Katz.
“The Morningside Property comprises 1,016m² of space that will be leased to 3M Australia to be used as its Queensland head office and last mile distribution facility. The lease term is ten years with fixed annual escalations of 3.0%.”
“Both acquisitions are consistent with IAP’s strategy of acquiring good quality industrial properties with strong tenant covenants and long lease terms and increase IAP’s exposure to the strongly performing industrial sector” comments Katz.
“IAP believes the Brisbane industrial market currently represents relative value, and the acquisitions complement IAP’s recent Brisbane industrial acquisitions in Brendale (completed in January 2021) and Pinkenba (completed in March 2021).”
Both acquisitions are due to complete in mid-May 2021.
