Bayer lease prompts healthy investment sale in Northgate

The lease of a brand new 650sq m industrial unit in Northgate to German multinational Bayer Pharmaceuticals has prompted the off-market acquisition of the same property for $1.525M.

Ray White and CBRE successfully leased and sold Unit 2 at Lot 18/62 Crockford Street, following the recent completion of the new 1,300sq m duplex facility.

Bayer Pharmaceuticals signed a three-year lease, with an additional three-year option, over the property at a net rental of $97,500 p.a. net.

Following Bayer’s lease, Unit 2 was then quickly snapped up off market by a private investor sourced through CBRE’s database, with the final sale price reflecting a sharp 6.39 per cent yield.

CBRE’s Dan Munnich, who jointly marketed the project with Ray White Commercial Queensland Sales and Leasing Executives Aaron Aleckson and Andrew Doyle on behalf of Sueby Pty Ltd, said the transaction highlighted the strength of investor demand for high-quality industrial facilities underpinned by top-tier covenants.

“The buyer was attracted to the quality of the tenant covenant and as it’s a brand-new premise, the investment offers significant tax depreciation benefits,” Mr Munnich said.

“The industrial investment market is extremely competitive, particularly at this price point – good quality buildings with a brand-new lease term are hard to come by.” Mr Doyle said.

Unit 2 occupies a 50% of the 2,000sq m site and comprises 650sq m of office-warehouse space. Other features of the property include three phase power, substantial car parking, and a truck turning and container set down area.

The marketing agents also transacted Unit 1, which also offers 650sq m GFA, sold to an owner occupier prior to practical completion.

“The owner occupier market in this size range is also quite competitive, with an under supply of quality vacant buildings. Ray White identified the local construction business as a purchaser after contacting them through direct marketing earlier in the year. The director had been looking for a number of months and immediately made an offer after the first inspection.” Said Mr. Aleckson.

Ray White and CBRE also negotiated the initial sale of the development site to Sueby Pty Ltd in 2016.