Ascendas REIT Australia pays $33.5m for CavCorp’s Cargo Business Park in Eagle Farm

A BEST-in-class business park in Brisbane’s east has changed hands for over $33 million — sold by a developer better known for residential projects.

CBRE’s Mike Walsh and Peter Court in front the Cargo Business Park they sold for $33.5 million. (AAP image, John Gass)

A BRISBANE developer better known for its award-winning residential projects has sold a state-of-the-art business park known as the best in class for it sector.

Ascendas REIT Australia paid $33.5 million for the Cargo Business Park developed by CavCorp 12 years ago.

CBRE’s Mike Walsh, who struck the deal with Peter Court, said the Eagle Farm business park’s appeal was its quality improvements, blue-chip tenancy profile and strong historical leasing performance.

“The sale campaign generated over 80 inquiries, and seven offers were presented at close of the campaign,” he said.

“Given the quality of the offering we expected the asset to be hotly contested, but it was pleasing to see a very strong cross-section of domestic and offshore groups bidding to secure the property.

“The strong sale result can be directly attributed to CavCorp’s vision to develop this best-in-class business park back in 2006 which was ahead of its time, and they have managed and maintained it to a level rarely seen,”

The property at 56 Lavarack Ave has a net lettable area of 8321sq m and is on a 7786sq m site. It has 153 car bays and major tenants include Tunstall, Betta, Nike and Device Technologies.

It was 88 per cent occupied and had a weighted average lease expiry of 2.4 years. The sale realised an initial yield of 7.21 per cent.

Mr Court said the purchase continued Ascendas REIT’s interest in Brisbane, having last year acquired two Fortitude Valley office buildings at 100 and 108 Wickham streets for $83.8 million and $106 million respectively.

“Ascendas REIT continue to find value in product by repositioning or not trending where others are looking,” he said.

“The purchase of Cargo is a further sign of their confidence in the Brisbane market.”

This year, CavCorp was awarded 2018 Queensland Master Builders best residential high rise over $20 million.