A high-quality industrial investment in Brisbane’s tightly held TradeCoast Central precinct has been sold, reinforcing strong investor demand for long-leased core industrial assets in strategic locations.
The A-grade asset at 65 Backhouse Place, Eagle Farm was purchased by a private investor for $16.5 million, reflecting an initial yield of 5.45 per cent.
The transaction was negotiated by Elliot Ryan and Ben Hatch of Knight Frank on behalf of Ultra Labels Pty Ltd, who will remain in occupation under a long-term leaseback arrangement.
The modern office and warehouse facility at 65 Backhouse Place comprises a total gross lettable area of 2,793sq m on a 5,914 square metre within Brisbane’s premier industrial location, TradeCoast Central.
The property benefits from a 15-year initial lease term, with two five-year options, and a commencing net income of $900,000 per annum.
Located within the highly sought-after TradeCoast Central Estate, 65 Backhouse Place offers exceptional connectivity to the Gateway Motorway, Brisbane Airport and the Port of Brisbane, underpinning strong long-term occupier demand.
Mr Ryan said the transaction highlighted continued depth of capital targeting well-located industrial assets with secure income profiles.
“Investor appetite for core industrial assets in TradeCoast Central remains extremely strong, particularly where there is income security underpinned by a long WALE and a high-quality covenant,” he said.
“Opportunities of this calibre are increasingly rare. The combination of a modern facility, recent warehouse expansion, and a long-term leaseback to an established national business resonated strongly with investors seeking defensive, long-duration income. This is reflected by the rate per square metre achieved of $5,908.”
Mr Hatch said the result reflected the enduring appeal of Brisbane’s Trade Coast industrial market.
“TradeCoast Central is widely regarded as Queensland’s premier industrial and logistics precinct,” he said.
“With its proximity to major freight infrastructure and limited supply of institutional-grade assets, investor competition for well-leased opportunities continues to intensify.
“This sale demonstrates ongoing confidence in the precinct and the long-term fundamentals of Brisbane’s industrial market.”
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