Savills News

Gateway office park investment sells for $17.3m

A private investor has snapped up a stand-alone office investment for $17.3 million located in the TradeCoasts’ Gateway Office Park.

A private investor has snapped up a stand-alone office investment for $17.3 million located in the TradeCoasts’ Gateway Office Park.

Savills Shaw Harrison along with Peter Chapple and Jack Morrison were formally appointed by GARDA Capital to sell the asset named Building 2 at 747 Lytton Road via an expressions of interest campaign.

Following a successful re-leasing campaign over the past 12 months undertaken by Savills, the building presented strongly to the market with 100% occupancy and a weighted average lease expiry (WALE) of 3.1 years.

The four level commercial office building consists of 3,346sq m of net lettable area, underpinned by a holding income of $1,366,145 per annum across seven corporate tenants which include brands such as NextFleet Australia and YOUI Insurance.

Savills Director Shaw Harrison said that the purchaser was attracted to the Gateway Motorway proximity and Office Park positioning being the heart of logistics activity in Brisbane.

“The growth of the TradeCoast precinct has resulted in stable and consistent demand from office users requiring proximity to major freight, transport and industrial activities,” Mr Harrison said.

Savills State Director of Capital Transactions Peter Chapple said that fringe & suburban assets have continued to perform strongly across Brisbane, with over $960 million worth of transactions above $10 million recorded over the last 12 months.

“One trend we are witnessing is the increased amount of investor interest from all purchaser categories, including offshore investors, who have identified these metropolitan office precincts as established commercial property markets in their own right that offer a superior yield to fringe and CBD assets,” Mr Chapple said.

Additionally, demand for multi-tenanted CBD fringe and suburban assets continue to remain strong according to Savills Jack Morrison.

“Testament to the efforts of GARDA Capital in positioning 747 Lytton Road in the leasing market, the asset has attracted a strong tenant profile with a host of global and national tenants.

“Many of whom are first term occupants with a specific need to be located in the precinct, a huge draw card for investors of all classifications,” Mr Morrison said.

Learn more about Savills Capital Transactions.

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