 Asset Class: | Industrial |
 Price: | $ 4000000 |
 Net Yield: | 5.71 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
Presenting an exceptional investment opportunity.<br><br>A very rare, freehold, industrial property, fully leased to a long term National tenant (Maxi Parts - 13 years occupation) and a Queensland based tenant with hundreds of locations state wide (Recycling Express - approx 5 years occupation).<br><br><span style="color:rgb(51, 51, 51);">Maxi Parts have just exercised their 3 year lease at a rent that is considered below market given (the vendor did this given the quality of the tenant and their tenure at the property), which indicates Maxi Parts are happy with the property.</span><br><br><span style="color:rgb(51, 51, 51);">Rents are considered below market and therefore, we expect future value uplift and higher rental returns. Also, there is the potential to strata title and sell off the two units separately for a profit.</span>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
The property is located in Burpengary, which sits in the Northern Brisbane Growth Corridor, approximately 37 km north of Brisbane CBD, and 66km south of the Sunshine Coast.<br><br>Burpengary is within the Moreton Bay Council area, close to Caboolture. It is a busy industrial area being close to the M1 Motorway.<br><br><br>The property is near:<br><br><br><p style="margin-inline-start:36pt;"><span style="color:windowtext;">· Brisbane Airport </span><span style="color:windowtext;margin-inline-start:36pt;">(35 km*)</span></p><br><p style="margin-inline-start:36pt;"><span style="color:windowtext;">· Brisbane CBD (37</span><span style="color:windowtext;margin-inline-start:36pt;">km*)</span></p><br> <br><br><b>The northern corridor is expected to accommodate 24% of the projected population growth in SEQ by 2031. By this time the MBRC and Sunshine Coast Regional Council area will have a combined population of over 1 million.</b><br><br><br><b>Population snapshots:</b><br><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Greater Brisbane population is 2,700,000* at June 2023</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">SEQ’s population is 4,000,000*.</span></p></li></ul><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">SEQ’s population will increase to 6,000,000* by 2046.</span></p></li></ul>
Additional Location Information File<b><u>Maxi Parts</u></b><br><br><span style="color:rgb(0, 0, 0);"><b>MaxiPARTS</b></span><span style="color:rgb(0, 0, 0);"> is one of Australia's largest truck and trailer parts company with over 29 locations around Australia.</span><br><br><a style="color:rgb(71, 71, 71);display:inline;" target="_blank" href="https://www.maxiparts.com.au/"><u>https://www.maxiparts.com.au/</u></a><span style="color:rgb(71, 71, 71);"></span><br><br><br><span style="color:rgb(71, 71, 71);"><b><u>Express Recycling (Containers For Change)</u></b></span><br><br><span style="color:rgb(0, 0, 0);">Container Exchange (COEX) is a not-for-profit organisation created to establish and run the Containers for Change scheme in Queensland. We focus on reducing container litter, increasing recycling efforts and helping communities benefit through paying refunds to individuals, charities and community groups.</span><br><br><span style="color:rgb(0, 0, 0);">Express Recycling has locations up and down the SE Queensland Coast from Noosa to Currumbin and a depot in Hervey Bay</span><span style="color:rgb(0, 0, 0);font-style:normal;font-weight:normal;background-color:rgb(255, 255, 255);">Express Recycling has locations up and down the SE Queensland Coast from Noosa to Currumbin and a depot in Hervey Bay.</span><br><br><a style="color:rgb(71, 71, 71);display:inline;" target="_blank" href="https://expressrecycling.com.au/"><u>https://expressrecycling.com.au/</u></a><span style="color:rgb(71, 71, 71);"></span>
Initial Term:
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Security Info:
Please refer to the attached.
Additional Financial Information FileInitial Term:
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Security Info:
Subject Property: 1-7 Brewers Street, Burpengary - 1,300sqm (that can be split into 2 tenancies of 800sqm, 500sqm) - $176/sqm net (averaged) - Maxi Parts _ $191/sqm - Recycling Express - $152/sqm Agent has advised: Front tenancy (Maxi Parts-800sqm): Recent leasing in similar areas for showroom industrial ranges between $185/m² - $230/m². The market review was completed at $185/m² which keeps a good quality tenant on a new term of lease. There is upside here in the future. Rear tenancy (Recycling Express - 500sqm): This is your typical run of the mill industrial warehouse. Leasing rates in the surrounding areas range between $150/m² to $180/m² for these spaces. These properties are hard to find and always attract tenants quickly with minimal incentive. Other rent evidence for surrounding suburbs: 20 Saltwater Circuit, Narangba - 3,860 sqm (single tenant) - $186/sqm net 3 Mineral Sizer Court, Narangba - 2,563 sqm - $180/sqm net (2024 lease deal) Note: the above rents have been provided by third parties and not verified to leases, therefore, they are subject to valuation and further due diligence.
Offer To Purchase:
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<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Description:</b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> Freehold, modern (built circa 2,000), concrete tilt panel, industrial warehouse</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Tenants: </b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Fully leased to two, long term tenants on long term leases:</span></p></li><ul style="list-style-type:circle;list-style-position:inside;padding-inline-start:20px;"><ul style="list-style-type:square;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:inherit;font-style:inherit;font-weight:normal;">Maxi Parts - national business (truck and trailer parts) - 6 year lease</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:inherit;font-style:inherit;font-weight:normal;">Containers For Change (Recycling Express) - Queensland business with hundreds of locations across Queensland - 10 year lease</span></p></li></ul></ul><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Site Area: </b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">2,983 sqm* - large corner site</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Lettable Area: </b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">1,300sqm*</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>WALE:</b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> 3.7 years by income as at 1 May 2025</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Value Add Ideas:</b></span></p></li><ul style="list-style-type:circle;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:inherit;font-style:inherit;font-weight:normal;">Strata title the two tenancies and sell off separately (agent indicated $3,750/sqm+ for strata title units around Burpengary area vs approx. $3,077/sqm for whole property) - </span><span style="color:inherit;font-style:inherit;"><b>this creates approx. $875,000 of immediate potential upside value</b></span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:inherit;font-style:inherit;font-weight:normal;">Below market rents (average $176/sqm net passing vs $195/sqm estimated average net market rent) - this would bring the yield using market rents to approx. 6.3% on purchase price and approx. $4.4m value assuming purchase yield - </span><span style="color:inherit;font-style:inherit;"><b>this creates approx. $400,000 of potential upside value within the next 3 years</b></span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;font-weight:bold;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(0, 0, 0);font-style:inherit;font-weight:normal;">Solar panels on roof (additional roof rent of approx. $10k p.a. (TBC) at purchase yield, therefore, approx. </span><span style="color:rgb(0, 0, 0);font-style:inherit;"><b>$175,000 potential value upside) </b></span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;font-weight:bold;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(0, 0, 0);font-style:inherit;font-weight:normal;">Digital billboard fronting Bruce Highway (subject to approvals and lease deal) (potential additional rent of approx. $10k p.a. (TBC) at purchase yield, therefore, approx. </span><span style="color:rgb(0, 0, 0);font-style:inherit;"><b>$175,000 potential value upside)</b></span></p></li></ul></ul><br><p style="padding-left:0px;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Why we like this property:</b></span></p><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Industrial - strong tenant demand</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Freehold - land underpins value</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Strong tenants: national business (Maxi Parts) and Queensland </span><span style="color:inherit;font-style:inherit;font-weight:normal;">business with hundreds of locations across Queensland (Recycling Express).</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Low rents</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Ability to strata title and sell off separately for a profit</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Net leases - ensures returns</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Low management - concrete tilt panel industrial facility with two large tenants</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Property has been built above flood levels per vendor and agent</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="padding-left:0px;display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">Purchasing below estimated replacement costs</span></p></li></ul><br><span style="color:rgb(0, 0, 0);"><b><u>Deal Summary:</u></b></span><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Asking price :</b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> $4m</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Price ($/sqm):</b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> $3077/sqm</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Net Income: </b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">$228,286 ($176/sqm) - below market rents</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Net Passing Yield: </b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;">5.71%</span></p></li><li style="list-style-image:none;color:rgb(36, 36, 36);font-style:inherit;"><p style="display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Potential Net Market Income:</b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> $253,000 ($195/sqm)</span></p></li><li style="list-style-image:none;color:rgb(0, 0, 0);font-style:inherit;"><p style="display:inline;"><span style="color:rgb(36, 36, 36);font-style:inherit;"><b>Potential Net Market Yield:</b></span><span style="color:rgb(36, 36, 36);font-style:inherit;font-weight:normal;"> 6.3% - if market rents were applied to the purchase price</span></p></li></ul>
