Industrial Investment | $6,150,000 | Net Yield: 6.51% | Central Queensland

This off-market Central Queensland industrial investment presents an opportunity to secure a modern industrial workshop and earthmoving depot on a substantial 20,000 square metre freehold landholding. Leased to an established industrial services operator backed by an ASX-listed parent company, the property combines long-term income security, structured rental growth and significant future development potential within one of the region's established industrial precincts.

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The property generates approximately $400,400 in net income per annum under a new 10-year triple net lease, with three further five-year options providing potential tenure of up to 25 years. Annual rental increases of 3.5% deliver consistent contractual income growth, while the triple net lease structure places responsibility for specified property outgoings, including repairs, maintenance, land tax and management fees, with the tenant.

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The asset comprises approximately 1,440 square metres of modern concrete tilt-panel workshop and office accommodation, constructed in 2015, on a substantial 20,000 square metre freehold site. Purpose-built for heavy vehicle, earthmoving and industrial operations, the facility features extensive hardstand areas, wide road access and heavy vehicle accessibility. The property's relatively modern construction also provides potential depreciation benefits and reduced near-term capital expenditure requirements.

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A key feature of the investment is the substantial underlying landholding, which provides flexibility for future warehouse expansion, additional industrial development or alternative value-add initiatives, subject to relevant approvals. The property also presents potential for supplementary income through rooftop solar leasing, offering an additional avenue to enhance returns over the holding period.

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The acquisition has been negotiated at $6,150,000 against an estimated replacement value of approximately $8.5 million, representing a potential $2.35 million discount to replacement cost. This pricing differential provides an additional investment consideration alongside the property's existing income profile and future development flexibility, subject to independent valuation and verification of replacement costs.

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The property is occupied by a well-established civil construction and industrial services operator with approximately four decades of industry experience. The business provides a range of services across infrastructure development, mining operations, equipment hire and materials supply, supported by an extensive operational footprint throughout regional Queensland.

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Having occupied the property for approximately a decade, the tenant has demonstrated a longstanding operational commitment to the site. The new 10-year leaseback arrangement, together with three five-year options, provides a strong foundation for continued occupancy, while the backing of a diversified ASX-listed parent company supports the overall tenant covenant.

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Positioned within an established Central Queensland industrial precinct, the property benefits from strategic connectivity to major regional transport networks and key infrastructure. The surrounding area supports a concentration of transport, earthmoving, machinery servicing and industrial businesses, reinforcing its importance as a commercial and logistics hub.

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The broader Central Queensland region benefits from a diversified economic base spanning mining, agriculture, civil construction, infrastructure investment and industrial services. Continued activity across these sectors supports demand for functional industrial accommodation, particularly facilities offering substantial hardstand capacity, heavy vehicle accessibility and flexibility for future expansion.

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At a Rethink negotiated purchase price of $6,150,000, the investment delivers an approximately 6.51% net yield on current passing income of $400,400 per annum. With fixed annual rental increases of 3.5%, contracted income is positioned to grow over the initial lease term, providing a predictable income escalation profile.

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The property's triple net lease structure further supports cash flow by transferring responsibility for specified property outgoings to the tenant, while its substantial landholding and potential development opportunities provide avenues for longer-term capital growth.

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With an ASX-backed tenant, 10-year triple net lease, 3.5% annual rental increases, substantial freehold landholding and an acquisition price below estimated replacement value, this off-market investment reflects the calibre of industrial property opportunities Rethink Investing continues to secure for clients across Australia.

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