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PROPERTY syndicator Fidelis Investment has shown how to make a quick $2 million in the Brisbane property market after selling an industrial property for $9.1 million.
The Eagle Farm property, at 37 Eagleview Place, was bought by Fidelis just three years ago for $7.2 million.
It has just been snapped up by a Sydney buyer who already owns another property in the street.
"This sale represents a great result for our investors," says Rod Samut, deputy chairman of Fidelis.
The Eagle Farm property is tenanted by Audio Visual Technology, trading as Videopro, on a lease that could extend to 2022.
The net passing rental of $728,912 per annum pitches the $9.1 million sale price at a yield of 8 per cent.
CBRE's Nick Witheriff and Ed Bull, who negotiated the sale, say the prime eagle Farm location was a key selling point as well as the lack of zoned land to develop new industrial properties in the area.
"Modern investments in Eagle Farm are tightly held and are becoming more desirable for investors given the similarities between this market and south Sydney," says Witheriff.
"Given the continued residential development occurring on the city fringe, Eagle Farm has become the first port of call for industrial users looking to access the CBD and Airport precincts."
The property comprises a site area of 5335sqm and total floor area of 3917sqm. This includes a 2452sqm warehouse plus ground floor and mezzanine-level office space.
Bull says the Brisbane industrial market is being targeted by private investors, syndicators and major funds, including offshore groups.
"There is still strong demand for secure long-term leased investments and CBRE has several significant transactions to report in the coming weeks that will further support current pricing levels," he says.
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