Boutique investment group OzProp Capital has purchased its third southeast Queensland asset in six months

An investment firm has completed almost $250 million in commercial property transactions in almost a decade based on sound income yields and strong capital growth

SOUND INVESTMENT: OzProp Capital paid $9.5 million for 47 Acanthus St, Darra.

BOUTIQUE investment firm OzProp Capital has picked up its third southeast Queensland asset in six months and closed another of its unlisted property funds.

The firm has settled on the $9.5 million purchase of a purpose-built cold storage/logistic complex at 47 Acanthus St, Darra.

The sale realised an initial net yield of 7.37 per cent and the property has a new five-year lease and inflation-beating 3 per cent annual rental uplifts.

Like OzProp’s other two purchases, the Darra investment is fully leased and over subscribed.

The 3844sq m complex is on a 9336sq m site and is tenanted by Comgroup Supplies which manufactures and distributes individually-quick-frozen foods.

OzProp managing director Michael Parker said the response from investors was “fantastic”.

“The depth of the individually-quick-frozen industry coupled with the strong presence of the tenant on a brand new lease in a relatively new building with good design underlines the strength of our conviction in this property and the fund,” he said.

Just under five years old the complex’s warehouse has a massive internal clearance height of 13m and seven roller shutter doors with levellers. It also has a solar power system, an extra 2000sq m of hard-stand parking, a standby generator and its own borehole.

OzProp co-founder, Jorgen van Seters said since its inception in 2008, the group has delivered nearly $250 million in successful commercial property transactions.

“It reflects our strategy of delivering sound income yields with the strong prospect of capital growth and the capacity to create wealth for our investors,” he said.

This transaction is the fourth in the past 12 months for OzProp totalling over $49 million. Following the purchase of the Home Central Retail Centre in Coffs Harbour for $11.75 million on a net passing yield of 7.7 per cent in June 2017, OzProp acquired a cold storage facility on the Pacific Motorway between Brisbane and the Gold Coast for $22 million at a yield of 8.1 per cent in August 2017.

In December 2017, OzProp also completed the acquisition of an office building in Brisbane’s Fortitude Valley for $5.9 million at an initial net yield of 7.2 per cent.