CGD Capital snaps up Brisbane site

Sydney-based investment group CGD Capital has purchased its first industrial facility in Brisbane, for $3.65 million.

The 2,983sqm site at 21 Fulcrum Street, Richlands, features a freestanding and functional 2,133sqm warehouse that is currently home to expedition trailer manufacturer BruderX.

The transaction represents a yield of 4.38% on BruderX’s current lease, which runs through to July 2025.

Within a prominent industrial hub in Brisbane’s outer south-western suburbs, the property is near the junction of the Ipswich Motorway and Centenary Highway.

CBRE’s Jack Sherrie and Sean Skeffington brokered the transaction on behalf of the private vendor.

“The investor saw immense value in the property due to its current lease term, and Brisbane’s rising industrial rents,” Mr Sherrie said.

“During CGD Capital’s search for a site, they found that securing an A-grade facility in prominent Brisbane industrial suburbs with a near-6% return is next-to impossible.

“They changed their strategy and were open to different avenues to acquire their requirement, even if that meant taking on some leasing risk.”

Mr Skeffington added: “High-grade investment stock in the west is currently scarce, and incoming investors are having to look at different approaches to acquire assets with decent returns.

“Investors are looking at under-rented assets, with the foresight to gain a significant rental increase in the long run.”

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