Freehold Industrial Asset | $4,865,000 | Net Yield: 6.37% | QLD

This fully leased freehold industrial investment represents the calibre of strategically positioned, income-producing assets Rethink Investing continues to secure on behalf of clients seeking exposure to Queensland's robust industrial sector.

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Positioned within the heart of Paget, Mackay's most established industrial precinct and the region's leading hub for engineering, manufacturing and logistics, the property is set on a substantial 6,665 square metre landholding with low 24% site coverage, presenting clear future development potential for discerning investors.

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The asset comprises 1,651 square metres of net lettable area featuring a heavy-duty workshop supported by an overhead crane system, complemented by a showroom and mezzanine office. Zoned General Industry, the property features extensive external hardstand with full drive-around access, making it exceptionally well suited to high-intensity industrial operations and logistics activities.

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The tenant, Aus Bore Pty Ltd operating as part of the Austin Engineering group, has occupied the site continuously since its construction in 2005, reflecting nearly two decades of operational commitment to the location. Austin Engineering is a globally recognised engineering and manufacturing company established in 1982, specialising in the design and production of customised mining equipment for some of the world's largest resource companies.

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The tenant holds a 5-year lease extending to 2029 with two further 5-year options, secured by 3.5% fixed annual increases. The lease structure sees the tenant responsible for all outgoings except management fees; however, Rethink Investing has conservatively accounted for this in financial analysis, adopting a net income of $309,913 per annum.

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Comprehensive rental analysis reveals the property is currently under-rented by approximately $15 to $20 per square metre when compared against recent comparable transactions within the Paget industrial precinct. This equates to approximately $25,000 to $33,000 per annum in potential rental uplift, translating to approximately $380,000 to $530,000 in capital uplift at current market capitalisation rates.

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The property's strategic positioning delivers exceptional connectivity, situated just minutes from Mackay Airport, the CBD business precinct and the Bruce Highway. The asset sits among major national and international operators within a highly active industrial hub that forms part of the Paget Industrial Estate—one of the largest mining services hubs in the southern hemisphere, home to more than 500 businesses supporting the $26 billion Mackay–Isaac–Whitsunday economy.

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Mackay continues to demonstrate robust economic fundamentals, recording an annual economic output of approximately $22.92 billion and contributing a Gross Regional Product of $10.5 billion—more per capita to the Queensland Government than any other area in the state. The region supports over 10,000 registered businesses and 54,000 jobs, underpinned by globally recognised engineering sectors, resurging agribusiness, and significant growth in education, healthcare, logistics, tourism and construction industries.

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With a purchase price of $4,865,000 and total cash required of $2,068,947.50 (including 35% deposit and purchasing costs), the investment delivers a net annual cash flow return of $309,913 and a return on equity of 5.04% in pure cash flow terms. When accounting for conservative capital growth of 5%, 7% and 10%, the return on equity increases to 16.80%, 21.50% and 28.56% respectively, demonstrating compelling returns for long-term wealth creation.

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With secure long-term income, favourable site fundamentals including low site coverage and substantial land area, under-market rents presenting clear reversion potential, and strategic positioning within Queensland's premier industrial corridor, this acquisition reflects the calibre of freehold industrial assets with genuine value-creation opportunities that Rethink Investing continues to secure for clients.

About Rethink Investing

• Australia & New Zealand's largest and most experienced commercial buyer's agency
• $7 billion+ in commercial property secured for clients
• Exclusive access to 70% off-market opportunities
• Specialists in high-yielding commercial property investments

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Secure your next high-performing industrial asset with our expert team.