QE sale of Hume development

February 22, 2012 | Industrial | Regional | Commercial

After completing construction in July 2011, Quintessential Equities Pty Ltd has now successfully sold this high quality industrial investment property located at 36 Sawmill Circuit, Hume ACT, in a sale negotiated by Colliers International.

 

The property, an extremely well-secured investment property, experienced strong demand during the sale process, with multiple parties participating in the tender and subsequent negotiations, resulting in a strong yield of 7.4 per cent in support of the high quality improvements and strong lease covenant.

 

Shane Quinn, a Director of Quintessential Equities, said, “I would have liked to have retained the property longer term as it was a fantastic asset with secure income for 16 years to a subsidiary of a 200 ASX company in Downer EDI Works. QE offered this asset to the market as we are IRR driven on our returns and after developing the asset it was representing the best returns for investors in terms of the IRR. The yield of 7.4 per cent demonstrated the strength of the market for good stock with secure income.”

 

Situated in an expanding industrial suburb of Hume, located some 16km south of the Canberra CBD, the EDI Downer asphalt plant is located in the Monaro Industrial Park, accessed off the Monaro Highway by Tralee St, fronting Sawmill Circuit and with rear access to Alderson Place, thus allowing flow through access on the 2.1 hectare site.

 

The blue chip tenant, Downer EDI Works, currently provides an essential service from this site to the ACT and surrounding regions.

 

Fixed annual reviews of 4 per cent provide very attractive income growth throughout the initial 16 year lease term.

 

Purpose built as an asphalt plant - with the tenant having invested heavily in the installation of a Swiss- built, Ammann asphalt plant and associated equipment – the property enjoys an asphalt production capacity of 240 tonnes per hour and has a design life of plus 40 years.

 

This, together with the stringent remediation and make good measures in the lease, as well as the stringent environmental controls required to obtain an equivalent EPA  permit for an asphalt plant, make it highly reasonable to anticipate substantial lease extension beyond the initial 16 year lease term.

 

Included in the property are: a 650sq m office, high clearance warehouse of 800sq m, and  parking  area, a wash down bay with triple interceptor, the plant itself and associated tank farms and cold storage bins, a pond for surface run-off, with a treatment filtration system to meet environmental standards, and a drive through access for trucks.

 

The new Walker Industrial estate, where the property is situated, offers large level blocks of industrial land, having attracted an array of high caliber tenants such as Grace Records Management, Dell, Allied Pickfords and a Caltex Diesel stop, amongst others.

 

As Quinn points out, “The recent expansion of Hume has been driven by the changing character of Fyshwick, the original industrial base of Canberra, which has assumed a bulky goods and shop-front retail character. Rising land prices and rents at Fyshwick have displaced major space users into larger scale sheds in Hume that are ideal for trucking and transport, storage, building trades, and fabrication.”

 

For further information please contact:

Andrea Kopatsy, Marketing Manager                             

Marketing & Research, Colliers International                   

Tel: 0423 298 461                                                         

Email: andrea.kopatsy@colliers.com                                 

 

Back to listing