GARDA Capital will pay $19 million for an industrial facility that will be developed at Pinkenba

A NEW office/warehouse facility will be developed after a $20 million deal at a Brisbane precinct with air, sea, road and rail links.

PURCHASE: Work has started at 70-81 Main Beach Rd, Pinkenba.

A FUND controlled by ASX-listed GARDA Capital has exchanged unconditional contracts to acquire an office/warehouse which will be developed in Brisbane’s Australia Trade Coast precinct.

GARDA Diversified Property Fund will pay $19 million for the property at 70-82 Main Beach Rd, Pinkenba, after being introduced by CBRE’s Ed Bull and Nick Witheriff.

The deal represents an initial yield of 7.4 per cent and recycling industry market leader, Byrne Group, has pre-committed to a 15-year lease for a subsidiary business.

The property will operate as a resource recovery facility for soil, rock, gravel and construction materials but it does not treat with any noxious or household materials.

This facility is an expansion of an existing larger operation by the Byrne Group in the same area.

Settlement of the land is expected later this month with construction commencing thereafter with completion by January.

The property will have very low site cover and improvements consisting predominantly of hardstand, a 2000sq m facility and various site offices.

GARDA executive chairman Matthew Madsen said the ever increasing regulatory controls continue to support the sustained and strong growth of the construction recycling industry. “Differing regulatory frameworks between the Australian states also provides continuing competitive advantage for Queensland based facilities,” he said.

“Locally the site is extremely well located, closer to the city than other major facilities”.

The freehold property has immediate access to the major arterial roads network including the Bruce Highway and located only a few minutes from the Gateway Bridge.

The regularly shaped 4ha site is benefited from two existing street frontages and is located only a short distance to the proposed $100 million Brisbane cruise ship terminal which is anticipated to be completed in late 2019.

Recently the GARDA Diversified Property Fund exchanged unconditional contracts to acquire

a new industrial and office facility at Metroplex Westgate in Wacol.

The property will be acquired for $35.25 million representing an initial yield of 6.25 per cent. Volvo Group Australia has pre-committed to a 10-year lease for what will be their new Australian head office and service centre supporting the companies’ trucking brands.