No.6-16 Austral Pl, Derwent Park. Picture: Supplied
A significant freehold investment holding in the Derwent Park’s industrial precinct has attracted a wave of investor interest within days of hitting the market.
Selling agent Joe McDevitt of McDevitt Property said the property at No.6-16 Austral Pl spans seven titles totalling 5024sq m and is fully leased to Boral Construction Materials Group Ltd, which operates a concrete batching plant on the site.
The lease returns current rental of $125,175 per annum plus GST and outgoings, with an adjustment due in November 2026.
Structured on a five-year term from 2014 with five further five-year options, the lease provides a long-term income horizon for investors.
“The level of inquiry has been very good — significant in fact,” Mr McDevitt said, reflecting on the first week of the campaign.
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No.6-16 Austral Pl, Derwent Park.
No.6-16 Austral Pl, Derwent Park.
He said the presence of a national tenant was a key drawing card.
“A major national tenant is always a favoured lessee type by investors, including some who only buy property with this category of tenant,” he said.
Mr McDevitt said blue-chip lessees generally underpinned strong demand across the commercial and industrial sectors.
“A national blue-chip lessee is seen as a very positive aspect of the investment, minimising risk over the life of the capitalisation period,” he said.
“Accordingly, a lower yield may be acceptable to an investor in lieu of that minimised risk.”
He added that the lease structure — effectively a ground rental arrangement, with Boral responsible for maintaining the site and improvements — further reduced the owner’s ongoing obligations.
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No.6-16 Austral Pl, Derwent Park.
No.6-16 Austral Pl, Derwent Park.
Asked how often this style of asset came to market, Mr McDevitt didn’t hesitate.
“A good opportunity presents itself here for consideration as a very worthwhile investment proposition,” he said.
The fully fenced, secure site includes hardstand yard areas, staff amenities and a retention pond, with wide frontage to Austral Pl.
The zoning in General Industry.
Expressions of interest close on September 2.