Former Expo 88 Pavilion transacts in Pinkenba

23 July 2018

Another local manufacturing business makes the move in to Pinkenba with the recent sale of Building 3, 231 Holt Street at Pinkenba which remains to be one of eight original Expo 88 pavilions.

The building was exclusively marketed and brokered by Savills agent Shaw Harrison.

The $2.7 million sale for a 2,369sq m building works out at a building rate of $1,139 per square metre.

Savills Director of Industrial & Business Services, Shaw Harrison, said that the deal struck represents excellent buying for a core trade coast location.

“The purchaser intends to commence their building fitout over the course of the next few months,” Mr Harrison said.

The incoming owner occupier specialises in the production of custom-built machinery to install, manufacture technical components for motors in production, mining and equipment based industries.

“The building was originally marketed with a sitting tenant in situ as a tenanted investment with two and a half years to run on their lease.

We ended up fielding enquiries from both investors and owner occupiers during the campaign and the tenant suggested they would vacate if we secured an owner occupier, Mr Harrison said.

The building previously returned an income of $256,392 net, achieving an equated return of 9.5%.

“Yields like that just aren’t available these days, particularly in core locations such as the Trade Coast region,” he said.

The initial positioning of the property was known as Voxson Technology Park, built in the late 1980’s following some of the Expo 88 pavilion warehouses being relocated from the Southbank Brisbane site and reconstructed on the Pinkenba 3.48ha parcel.

Today the original Expo buildings on this site have been split into a complex of eight buildings over the group titled estate with extensive refurbishments over all of the building over the years.

Mr Harrison said that the building was in need of a bit of a polish but has had some recent major refurbishments completed, including a brand new replacement roof.

“The new owners are likely to transform it into something quite special. When you buy a building well and can see through the dirt and dust, a renovation is a minimal expense at the end of the day.

“Smart buyers are seeing through some of the minor faults with property to acquire at prices that will perform strongly on returns and growth into the future. We recommend buyers reconsider the ugly ducklings when the fundamentals of good property are all there,” Mr Harrison said.

This is the second campaign successfully concluded by Savills in the same estate in the past year, with the recent lease of the neighbouring Building 2 earlier in the year.

“The vendor was very pleased with the result, with many interested parties throughout the formal campaign expressing offers,” Mr Harrison said.

Property records indicate the seller paid $2,200,000 for the property in 2014.

 
 

Key Contacts

Shaw Harrison

Shaw Harrison

Director
Industrial & Logistics

Brisbane

+61 (0) 7 3002 8929