Direct Commercial Property (DCP) is looking to end 2021 on a high, with three new acquisitions of almost $30 million, and an annual average capital return to investors of over 25 per cent.
Managing Director Ed Bull announced three major property purchases in Brisbane, and two sales in regional New South Wales.
The three properties purchased include 28 Akuna Court and the associated wet leases in the industrial hub of Hemmant, north east of the city for $19,750,00, 58 Anton Road also in Hemmant and home to Cruise Craft Boats for $6,195,000, and 1 Silicon Street in Narangba, the base of Cleanaway Solid Waste for $3,817, 840.
The deals take DCP’s total acquisitions since inception to over $200m in value across 21 syndicates. The three assets recently acquired are seen as key infrastructure by the group and fit the investment model to provide investors with strong secure income streams.
Two properties in New South Wales have been sold for $9,888,000.
“DCP has sold 113 Maitland Road in Muswellbrook and 230 Kelly Street in Scone, both leased to a dominant Toyota franchisee. Each asset was sold for $4,944,000 and settled on 22 October 2021,” said Mr Bull. “Aaron Dahl and Morgan Ruig from Cushman & Wakefield negotiated the deals on behalf of DCP after a national auction campaign,” he said. “The assets were originally purchased as part of a portfolio sale and leaseback at an initial yield of 7%. Our original intention was to initially hold these assets for five to 10 years, however, with an offer of 6.25% yield in a very short period of time it was decided to liquidate the assets which resulted in average capital return of 24% across the two assets and average IRR of just over 20%.”
Queensland-based transactions in the past six months include 28 Commercial Drive in Shailer Park in June for $12,450,000, 125 Axis Place in Larapinta for $9,300,000 and 435 Wondall Road in Tingalpa for $14,150,000. All delivered significant upsides to investors with internal rates of return up to 29%.