 Asset Class: | Industrial |
 Price: | $ 5400000 |
 Net Yield: | 6.50 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<p>Presenting an exceptional blue-chip industrial investment opportunity in Portsmith, Cairns. This property at 113-115 Kenny Street features a state-of-the-art climate-controlled facility with a fresh 10-year lease to Simon George & Sons, Queensland's leading fresh food wholesaler with over 100 years of industry experience.</p> <p>The property comprises a modern 1,802m² building on a substantial 5,835m² site, providing an impressive 31% site coverage that allows for future expansion potential. Constructed in 2004, this purpose-built facility includes a climate-controlled cold room panelled warehouse, packing and distribution areas, along with associated office spaces across two levels.</p> <p>With an attractive net rental return of $351,816 per annum and fixed 3% annual increases, this investment offers strong income security backed by bank and directors' guarantees. The lease structure includes 10 years + 5 years + 5 years, commencing September 2025, with market reviews after years 10 and 15.</p> <p>Located in the industrial heart of Portsmith with excellent access to major transport routes, this property presents a rare opportunity to acquire a premium industrial asset with a national tenant on a long-term lease in a tightly held market.</p>
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<p>Portsmith is a prime industrial and commercial precinct located in the heart of Cairns, Queensland. Situated just minutes from the Cairns CBD and with excellent access to major transport routes, the area has established itself as the premier industrial hub for Far North Queensland.</p> <p>The location benefits from proximity to the Cairns Port, airport, and major highways, making it ideally positioned for distribution-focused businesses like Simon George & Sons. As a key supply chain node for the region, Portsmith services not only Cairns but also connects to the broader Whitsundays, Darwin and Townsville tourism and service industries.</p> <p>The property itself boasts a commanding position on Kenny Street, one of the area's main thoroughfares, with excellent visibility and accessibility for logistics operations.</p>
Additional Location Information File<p><strong>Simon George & Sons Pty Ltd</strong> is Queensland's leading fresh food wholesaler with approximately 100 years of industry experience. Now in the hands of the 4th generation of market leaders for the Food Service Industry, they operate across multiple locations including Brisbane, Melbourne, Cairns, Darwin, and Townsville.</p> <p>As the clear market leader in supply across Cairns, Whitsundays, Darwin & Townsville tourism industry, Simon George & Sons represents an ideal tenant with proven business longevity and stability. Their commitment to the property is evidenced by the new 10-year lease commencing September 2025.</p> <p>The tenant occupies the entire property, utilizing the specialized refrigerated facilities and associated office spaces to support their fresh produce distribution operations. Under the lease agreement, they are responsible for day-to-day repairs and maintenance to the premises (excluding capital works), maintenance of all refrigeration and air-con units, garden maintenance, and rubbish removal.</p>
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<p>This investment presents a compelling financial proposition with a <strong>net rental return of $351,816 per annum</strong> after outgoings. The rental structure includes <strong>fixed 3% annual increases</strong>, providing built-in income growth throughout the lease term.</p> <p>The lease terms are exceptionally favorable, with a <strong>new 10-year commitment plus two 5-year options</strong>, potentially securing tenant income for 20 years. Market reviews are scheduled after years 10 and 15, ensuring the rental value remains aligned with market conditions.</p> <p>The property benefits from solid lease security arrangements including a <strong>bank guarantee of $86,250</strong> plus personal directors' guarantees. The underlying land holds a substantial unimproved value of <strong>$2,100,000</strong>, demonstrating the strong foundation of this investment.</p> <p>Less non-recovered outgoings amount to $28,217 annually, covering land tax ($19,867), owner public liability insurance ($350), and management ($8,000).</p>
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<ul> <li>Premium industrial investment with blue-chip tenant security</li> <li>Fresh 10-year lease to Simon George & Sons with options extending to 20 years</li> <li>Established family business in operation for approximately 100 years</li> <li>Strong net rental return of $351,816 per annum with fixed 3% annual increases</li> <li>Substantial 5,835m² site with 44m frontage and 127m depth</li> <li>Modern purpose-built facility constructed in 2004</li> <li>State-of-the-art 1,085m² refrigerated warehouse with 91 pallet cold room storage</li> <li>Low 31% site coverage providing future development potential</li> <li>Prime industrial location in central Portsmith</li> <li>Tenant handles all refrigeration maintenance and garden upkeep</li> <li>Lease secured with bank guarantee of $86,250 plus personal directors' guarantees</li> <li>Unimproved land value of $2,100,000 demonstrating underlying asset strength</li> </ul>
