Specialist dangerous goods property a stand-out purchase.
Queensland headquartered Direct Commercial Property (DCP) has purchased 44 Aquarium Avenue in Brisbane industrial hotspot Hemmant in the Australia TradeCoast for $10 million in a deal negotiated by David Gibson, Head of Industrial at Cushman & Wakefield and his colleague, Director Aaron Dahl.
The purchase follows news that DCP ended 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.
DCP Managing Director Ed Bull said the purchase of 44 Aquarium Avenue was a strategic addition to the DCP portfolio, at a time when industrial investment activity is soaring.
“With an immediate income distribution of 8% to investors, the equity required was taken up very quickly and oversubscribed within an hour,” he said. “Industrial investors from all over the country are currently looking north to Brisbane and the Queensland portfolios. Being able to secure the purchase of this Hemmant property, at a time when land supply is so limited is a coup for us. Right now, DCP has surplus capital looking to deploy in quality assets that represent value for our investors, and 44 Aquarium Avenue represents significant value.”
“Importantly, the property is home to specialised dangerous goods facilities which carry a huge replacement value; there are currently no existing vacancies in Brisbane with dangerous goods use approval.”
The property features a site area of 10,145sqm and a building area of 4,565sqm and is the heart of the Australia TradeCoast precinct, an in-demand zone that has limited land supply in the immediate area.
Built structures include three fully approved and compliant dangerous goods warehouses recently upgraded and in high demand, as well as office space.
Mr Bull said the property is fully leased until 30 June 2023 to ITW Australia Pty Ltd, a manufacturer and distributor of automotive aftermarket products for the DIY and DIFM markets in Australia and New Zealand and part of the US$13.4 billion dollar ITW family which operates in 57 countries around the world focusing on innovative customer solutions.
“This property provides investors a solid value proposition due to the specialised approvals and rental uplift and boasts an excellent position in terms of transport infrastructure, with access to the Port of Brisbane Motorway and the Gateway Motorway being easy and direct,” said Mr Bull.
David Gibson, Head of Industrial at Cushman & Wakefield said, “Land-rich opportunities of this nature within the TradeCoast precinct are extremely scarce. DCP were attracted to the strong underlying land value with quality improvements that are ideal for the tenant’s use.”
“We are seeing significant rental growth throughout the TradeCoast precinct due to strong occupier demand and very limited supply of existing and speculative stock. For investment groups to gain exposure to this, they are targeting short WALE investment product.”
In Q4 2021, DCP purchased three major properties recently in Brisbane and sold two in regional New South Wales, taking the company’s deals since inception to over $200m in value across 21 syndicates.
Under the direction of founder Ed Bull, DCP has completed 21 property syndicates, in excess of $200,000,000. Prior to founding DCP, Ed spent over 15 years as Senior Director of CBRE Industrial Capital Markets, where he took the business to a market leadership position.