 Asset Class: | Industrial |
 Price: | $ 740000 |
 Net Yield: | 7.12 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
This property presents as a very rare and exceptional opportunity to purchase a high yielding, fully leased, freehold, industrial warehouse, on a large, concrete sealed flood free site, in a tightly held industrial precinct of Townsville.<br><br>The occupier of the property is a well regarded, Repco Authorised Service Centre for both new and used cars and diesel vehicles.<br> <br>The tenant is currently the owner of the site (i.e. a sale and leaseback) and has been in occupation of the property since they purchased in 2021. The seller is planning to sell the property in order to recycle capital into both his business and other projects. The property has been previously occupied by automotive tenants since prior to 2007 per Google street view.<br><br>The rents for the property are considered at or below market, given the comparables (see below, subject to valuation and further due diligence). This allows for potential future rent growth.<br><br>Further, given replacement costs for land and buildings continue to rise, we expect rents to continue to grow into the future as vacancy remains very low. With increasing rents, we expect capital growth in the short to medium term.<br><br>We look forward to securing this property for you.<br><br>
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<span style="color:rgb(0, 0, 0);">The property is situated in one of Townsville’s bustling mixed use (residential, retail, industrial) precincts, Wulguru, located only 10 kilometres south of Townsville City.</span><br><br><span style="color:rgb(0, 0, 0);">Townsville is situated about 1,350km north of Brisbane. </span><span style="color:rgb(0, 0, 0);font-weight:normal;">Townsville is known as the Second Capital of Queensland.</span><br><br><span style="color:rgb(0, 0, 0);">The </span><span style="color:rgb(0, 0, 0);font-weight:normal;"> Townsville region itself is Queensland’s largest regional city with an estimated population of 237,452 people</span><span style="color:rgb(0, 0, 0);">. The region has 7th highest average income per capita in Australia and a Gross Regional Product (GRP) of an estimated $15.892 billion, which means the Townsville region alone represents 4.3% of Queensland's Gross State Product (GSP) of $366.277 billion. </span><br><br><span style="color:rgb(0, 0, 0);">Townsville’s industry diversity, government investment and major infrastructure further underpin its role as the commercial and services hub for North Queensland’s minerals, coal, agriculture, tourism and tropical sciences sectors. Townsville is a major service centre, and the main centre for government administration outside Brisbane. Regional health services are provided by the Townsville Hospital and several research institutions such as James Cook University, the Australian Institute of Marine Science, the Great Barrier Reef Marine Park Authority, Department of Agriculture, Fisheries and Forestry and the CSIRO. Townsville has a large Australian Defence Force community, due to both the army and air force bases also influencing the economy.</span><br><br><br><span style="color:rgb(0, 0, 0);">Nationally significant institutions and companies:</span><br><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· One of </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">Australia’s largest Defence bases</span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Research Centre </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">for food and tropical health research</span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Australia’s biggest electrical distributor - Ergon Energy Network & Energex (Energy QLD </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">Group)</span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Two of Northern Australia’s largest universities, James Cook University and Central Queensland </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">University (CQU)</span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Major resources and logistics offices including Aurizon, Incitec Pivot, MMG, Bravus and </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">Glencore Copper</span></p><br><br><span style="color:rgb(0, 0, 0);font-weight:normal;">Why we like Townsville:</span><br><br><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Strong economy underpinned by multiple industries (e.g. mining, defence, agriculture, tourism, </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">health)</span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Significant current</span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">infrastructure projects (e.g. Copper String project $5 billion) </span><a style="color:rgb(0, 0, 0);display:inline;" target="_blank" href="https://www.statedevelopment.qld.gov.au/news/what-is-copperstring-2032-and-why-is-it-important-for-queenslands-renewable-energy-future"><u>https://www.statedevelopment.qld.gov.au/news/what-is-copperstring-2032-and-why-is-it-important-for-queenslands-renewable-energy-future</u></a><span style="color:windowtext;"></span></p><br><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Population is </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">expected to grow from 240,000* people in 2024 to over 300,000 by 2046 </span><a style="color:rgb(0, 0, 0);margin-inline-start:36pt;display:inline;" target="_blank" href="https://home.id.com.au/forecast-review/townsville-july-2023"><u>https://home.id.com.au/forecast-review/townsville-july-2023</u></a><span style="color:windowtext;margin-inline-start:36pt;"></span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· Median house price of $500k in Townsville, compared to $900k plus in Brisbane, Sydney </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;">and Melbourne - almost half the price!</span></p><br><p style="margin-inline-start:36pt;"><span style="color:rgb(0, 0, 0);">· </span><span style="color:rgb(0, 0, 0);font-weight:normal;">The above facts indicate Townsville will attract more people including young families, further </span><span style="color:rgb(0, 0, 0);margin-inline-start:36pt;font-weight:normal;">driving property growth in Townsville.</span></p>
Additional Location Information File<b><u>Wulguru Automotive (Repco Authorised Service Centre)</u></b><br><br><span style="color:rgb(51, 51, 51);">Wulguru Automotive is a leading car service workshop in Wulguru, QLD that offers quality car service and repairs on all models, including four-wheel drives and diesel vehicles, with a specialised team of fully qualified mechanics.</span><br><br><span style="color:rgb(51, 51, 51);">Wulguru Automotive also specialises in a wide range of auto electrical work for heavy machinery, air conditioning, log book service, mechanical repairs, brakes, radiators, and clutches. They also offer a full range of automotive services.</span><br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.wulguruautomotive.repcoservice.net/about-us"><u>https://www.wulguruautomotive.repcoservice.net/about-us</u></a><span style="color:rgb(51, 51, 51);"></span><br>
Initial Term:
Security:
3 months rent plus GST
Security Info:
3 months rent plus GST
Please refer to attached financials.
Additional Financial Information FileInitial Term:
Security:
3 months rent plus GST
Security Info:
3 months rent plus GST
Subject Property: 362 Stuart Drive, Wulguru - 435 sqm - $121/sqm net p.a. + GST 10 Whitehouse Street, Garbutt - 420 sqm - $195/sqm p.a. net + GST 21-23 Dalrymple Road, Garbutt - 772 sqm - $163 sqm* net p.a. + GST 15 Catalyst Drive, Mount St John - 480 sqm - $156/sqm* net p.a. + GST 10 Vennard Street, Garbutt - 493 sqm - $129/sqm net p.a. + GST Subject to valuation, legal review and further due diligence.
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
days
Finance:
days
Settlement:
days
<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Fully leased, freehold, industrial workshop</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Brand new 3 year lease to long term occupier: Wulguru Automtive (a Repco Authorised Service Centre)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">1,255 sqm* site area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">435 sqm* building area (warehouse, office, awning)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Low impact industry zoned</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Great location in tightly held industrial precinct</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Ample 3 phase power supply</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Wash down bay with oil separator</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">High clearance roller shutters providing easy access and cross-ventilation</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Concrete-sealed site</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Securely fenced perimeter and double-gated crossovers</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Excellent exposure to high-traffic Stuart Drive and direct highway access</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Estimated Net Income: $52,725 p.a. + GST (after management fees and land tax) ($121/sqm)</span></p></li></ul><br><b>What we like about this property:</b><br><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Freehold - greater potential for capital value growth</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Industrial - strong commercial tenants</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tightly held precinct - high demand from both owner occupiers and investors, underpinning future value</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Long term tenant - auto mechanic has been operating from the property since pre 2007 per Google maps</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Very reasonable rents ($121/sqm when other industrial rents in Townsville are approx. $170/sqm+)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purchase price at $1,700/sqm on building area which is estimated to be below replacement cost.</span></p></li></ul>
