$15m sale: Why this regional city is luring investors
A QUALITY Toowoomba industrial property attracted strong national interest before setting a new investment benchmark for the regional city.
A Gold Coast-based private investor paid $15.2 million for the property, at 373 Anzac Ave in suburban Harristown, which was purpose built for Western Truck Group.
Colliers International's Dan Dwan, who struck the deal on behalf of a private local developer, said the sale realised a yield of 5.87 per cent and showed the growing confidence in the Toowoomba industrial market.
He said the campaign attracted interest from institutional buyers, syndicators, property funds and private wealthy investors and generated five or six offers.
"Given the nature of the Toowoomba market, the sale of an asset of this magnitude represents one of the highest priced properties transacted within the local market for a number of years, particularly in the industrial asset class," Mr Dwan said.
He said Toowoomba was maturing as an investment destination
"Traditionally Toowoomba was seen as a secondary or regional location and attracting regional yields," he said.
"But Toowoomba has matured to the point that we are starting to compete on a yield basis with some of the metro markets.
"A sub 6 per cent yield on passing income which certainly sets a new benchmark for the city."
On a 3.26ha site the property has two tilt panel sheds with a gross lettable area of about 4600sq m which includes a workshop, offices and showroom. It was sold with a weighted average lease expiry of just over six years
Mr Dwan said with the rollout of billions of dollars of infrastructure, Toowoomba was increasingly on investors' sights.
"The Second Range Crossing which has opened, the airport, the Melbourne-Brisbane inland rail and other key projects are being recognised at a national level," he said.
"Toowoomba has a strong industrial sector and we are seeing a significant amount of strategic inquiry and acquisitions."
Originally published as $15m sale: Why this regional city is luring investors