Print this page

Irongate Group acquires two Brisbane industrial properties

Posted On Monday, 19 April 2021 22:19 Published by
Rate this item
(1 Vote)

Irongate Group (ASX: IAP; JSE: IAP) has entered into agreements to acquire:

Graeme_Katz

  • an industrial facility to be constructed at 57 – 83 Mudgee Street, Kingston QLD (Kingston Property); and
  • an industrial facility to be constructed at Lot 24, Dunhill Crescent, Morningside QLD (Morningside Property).

Both properties are being acquired on a fund through basis. The purchase price of the Kingston Property is $14,320,000 representing an initial yield of 5.73%, and the purchase price of the Morningside Property is $5,932,000 representing an initial yield of 6.02%.

Commenting on the acquisitions, IAP CEO, Graeme Katz, said, “the Kingston Property will comprise two brand new, high quality generic warehouse and distribution facilities with 2,270m² leased to Construction Sciences for 10 years with fixed annual escalations of 2.5% and 3,250m² leased to Waco Kwikform for 8 years with fixed annual escalations of 3.0%. The Morningside Property comprises 1,016m² of space that will be leased to 3M Australia to be used as its Queensland head office and last mile distribution facility. The lease term is 10 years with fixed annual escalations of 3.0%.”

“Both acquisitions are consistent with IAP’s strategy of acquiring good quality industrial properties with strong tenant covenants and long lease terms and increase IAP’s exposure to the strongly performing industrial sector. IAP believes the Brisbane industrial market currently represents relative value, and the acquisitions complement IAP’s recent Brisbane industrial acquisitions in Brendale (completed in January 2021) and Pinkenba (completed in March 2021).”

Both acquisitions are due to complete in mid-May 2021.

Last modified on Thursday, 22 April 2021 22:26
eProperty News

Latest from eProperty News

Related items