 Asset Class: | Industrial |
 Price: | $ 2400000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
<p class="mb-4">On offer is a freehold industrial investment opportunity in the tightly held Toowoomba market. This property is on a 8,082m² block in the heart of Toowoomba's industrial precinct, offering a secure income stream with potential for future expansion.</p><p class="mb-4">The property has a long-standing tenant, Planet Paints, who has occupied the site for over 10 years. Its current lease has 4 years, 3 months remaining with 2 x 3 year options, providing investors with likely secure rental income to August 2035. Annual rent received is just over $145,000 net of outgoings including land tax and property management. Coupled with yearly CPI rental increases, this property delivers a solid day 1 6.05% net yield which will improve the longer the property is held.</p><p class="mb-4">The property includes a 360m² warehouse, 190m² office/sales area, and 100m² storage shed, along with a very rare Department of Environment licensed 950m² bunded storage facility. This specialist environmental permit adds significant value to the property, allowing for the storage and handling of regulated materials such as chemicals.</p><p class="mb-4">Located just off Carrington Road in Toowoomba's established industrial heartland, the property enjoys excellent accessibility and is surrounded by major retailers including Hastings Deering, Mitre 10, Sydney Tools and Guardian Self Storage. The site benefits from easy access to the Toowoomba Bypass and is just 15 minutes from Wellcamp Airport.</p><p class="mb-4">Toowoomba's strong economic growth (4.8% p.a. over the past decade) and strategic position as Queensland's largest inland city make this a compelling investment in a region experiencing significant infrastructure development, including the $1.6 billion Toowoomba Second Range Crossing and the Inland Rail Project.</p><p class="mb-4">For investors seeking a secure, low-maintenance industrial investment with a reliable tenant and potential for future growth, 7 Allen Court represents an exceptional opportunity in one of Queensland's most dynamic regional economies.</p>
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<p class="mb-4"><strong>Toowoomba</strong> is Queensland's largest inland city with a population of approximately 169,000 residents located 125km west of Brisbane,. Known as the 'Garden City' for its more than 150 public parks and gardens, Toowoomba combines country charm with urban amenities.</p><p class="mb-4">As the gateway to the resource-rich Surat Basin and Darling Downs region, Toowoomba boasts a <strong>diverse and resilient economy</strong> that has consistently outperformed the Queensland average with 4.8% growth over the past decade. The region's economy is underpinned by strengths in healthcare, education, retail, construction and manufacturing.</p><p class="mb-4">Major infrastructure developments are enhancing the city's connectivity and economic prospects, including the <strong>$1.6 billion Toowoomba Bypass</strong>, the <strong>$200 million Wellcamp Airport</strong>, and the <strong>$9.3 billion Inland Rail Project</strong>. The Toowoomba Enterprise Hub covers over 2,000 hectares and is emerging as one of Australia's most significant transport, logistics and business hubs.</p><p class="mb-4">With population projected to grow to 204,332 by 2041 and continued investment in healthcare, education and commercial development, Toowoomba represents an attractive location for long-term commercial investment.</p>
Additional Location Information File<p class="mb-4"><strong>Planet Paints Pty Ltd</strong> (ACN 109 223 298) has been a long-standing tenant, occupying the property for over 10 years. They specialise in recycling industrial and automotive paint-related waste and household paint collection into high-quality solvents and paint products.</p><p class="mb-4">Operating in the environmentally conscious recycling sector, Planet Paints employs unique technologies that position them with minimal competition in the Australian market - reportedly only one other competitor nationwide.</p><p class="mb-4">The tenant holds a valuable Department of Environment license for their 950m² bunded storage facility, permitting activities including:</p><ul class="bullet-list"><li><p class="mb-4">Drum and container reconditioning</p></li><li><p class="mb-4">Recycling, reprocessing or reusing regulated waste transport</p></li><li><p class="mb-4">Gas chemical manufacturing</p></li></ul><p class="mb-4">This specialised permit represents a significant operational asset and demonstrates the tenant's established position in their industry, supporting their long-term commitment to the site.</p><p class="mb-4">Tenant website: https://www.planetpaints.com.au/</p>
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<p class="mb-4">7 Allen Court offers an attractive financial proposition with an annual triple net rent of just over <strong>$145,000 plus outgoings and GST</strong>, delivering a solid <strong>6.05% net yield</strong> on the sale price of $2,400,000.</p><p class="mb-4">The lease structure includes <strong>annual CPI rental increases</strong>, ensuring growth in rental income over time. The tenant is responsible for outgoings annually, which covers council rates, water, insurance, and land tax.</p><p class="mb-4">The current lease commenced on 14 August 2024 with <strong>4 years, 3 months remaining</strong> on the initial term, plus <strong>two 3-year options</strong>, providing potential income security for up to 10 years 3 months.</p><p class="mb-4">With the property's substantial land size and zoning allowing for expansion, there's significant potential for capital growth and further development to increase the asset's value and rental return in the future.</p>
Additional Financial Information FileInitial Term:
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<p class="mb-4">None</p>
<p class="mb-4">Subject property: 7 Allen Court Torrington - 650 sqm - $224/sqm</p><ul class="bullet-list"><li><p class="mb-4">8 - 10 Tointon Street Toowoomba - 470 sqm - $208/sqm</p></li><li><p class="mb-4">72 Carrington Road Torrington - 460 sqm - $250/sqm</p></li><li><p class="mb-4">20 Carrington Road Torrington – 1,010 sqm - $200/sqm (High visibility)</p></li><li><p class="mb-4">66 Carrington Road Torrington - 880 sqm - $215/sqm</p></li></ul><p class="mb-4">Summary: Subject property is broadly in line with its peers. Note that its rare licensed bunded storage facility provides a leasing competitive advantage</p>
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<ul class="bullet-list"><li><p class="mb-4">4 years, 3 months remain on current lease with 2 x 3 year options providing secure rental income to August 2035 (10 years, 3 months)</p></li><li><p class="mb-4">Long-term tenant with over 10 years occupancy and in business for 20 years</p></li><li><p class="mb-4">Strong net income of ~$145,000 after all outgoings including land tax and management. Reflects a 6.05% net yield with annual CPI rental increases</p></li><li><p class="mb-4">Property includes a rare Department of Environment licensed 950m² bunded storage facility (chemical spillover protection). This supports leasing demand and is valuable</p></li><li><p class="mb-4">Purchased below replacement cost which is around $2.5m - $2.9m. This creates a competitive advantage for this asset as it does not need to charge above market rents to provide a return on development costs</p></li><li><p class="mb-4">Substantial 8,082m² land parcel providing opportunities for future expansion</p></li><li><p class="mb-4">Prime location in Toowoomba's established industrial heartland</p></li><li><p class="mb-4">Proximity to major retailers and excellent transport connections</p></li><li><p class="mb-4">Located in Queensland's second-largest regional economy</p></li><li><p class="mb-4">Benefits from significant regional infrastructure projects including the Toowoomba Bypass, Inland Rail, Wellcamp Airport, the Toowoomba Enterprise Hub and the new Toowoomba Hospital</p></li></ul>
