Brisbane industrial facility with redevelopment potential sells for $8.8m

30 September 2022

An Industrial offering situated over two titles at Northgate, around 14 kilometres north of the Brisbane CBD, with the potential to value add has sold for $8.8 million.

The properties at 87 Old Toombul Road and 12 Spiers Street were purchased by a private local investor from Neta Tire Service and Sales in a deal negotiated by Paul Anderson and Andrew Doyle of Knight Frank, in conjunction with David Fielding and Dani Conn of Castle Property Group.

The industrial facility adjoining the Shorncliffe railway line consists of 9,403sq m of land and 5,218sq m of improvements, including masonry and metal clad office/warehouse facilities.

The two titles were sold in one line with a 12-month lease back to Neta Tire Service and Sales at a rate of $440,000 per annum net plus GST, equating to an initial yield of five per cent.

Mr Anderson said the sales campaign generated strong enquiry, with 67 enquiries and seven offers at the campaign close.

“The sites offered an exceptional value-add opportunity to the purchaser, which was a strong drawcard in the current market,” he said.

“The successful purchaser intends to renovate the existing facilities at lease expiration and offer as refurbished leasing product.”

Mr Doyle said the property enjoyed three street frontages to Old Toombul Road, and Spiers and Hungerford Streets, providing scope for parties to drive through, especially if some of the built form was reconfigured.

“It also offers huge flexibility with the leasing strategy, with the potential for multiple tenants,” he said.

“Industrial leasing stock in the current market is also very tight, so we expect the renovated project to be received very well by potential tenants upon completion.”

Northgate is a prime industrial location in Brisbane due to its proximity to Brisbane Airport, access to the Gateway Motorway and tunnel network.

Old Toombul Road feeds into Toombul Road, a major connector between Sandgate Road and the Gateway Motorway (M1).

This strategic location provides proximity to some of Brisbane’s most significant road infrastructure; Brisbane’s tunnel network, Pacific and Bruce Highways – providing easy north and south access.