Why this property group has snapped up $10m in new NQ assets
A PROPERTY investor has added two North Queensland properties worth more than $10 million to its industrial portfolio.
Sentinel Property Group has acquired a vacant industrial property at Paget which includes a large, ready-to-use building and substantial surrounding hardstand area at 19-21 Formation Street for $4.9 million.
Ray White's John Dwyer and Fred DuBois sold the Paget property on behalf of Receivers and Managers Deloitte.
Sentinel's Nick Russell and Michael Cars are offering the asset for lease and have already received strong inquiries from prospective tenants.
The company also snapped up a strategic Townsville holding leased to ASX-listed transport and logistics company K&S Corporation at 2-6 Curly Crescent, Roseneath for $5,416,550 through Knight Frank's Paul Dury and Mark Fitzgerald on a yield of 9.28 per cent.
Sentinel executive chairman and chief investment officer Warren Ebert said the Townsville and Mackay properties would be added to the Sentinel Industrial Trust, which includes assets in Mackay, Townsville, Brisbane, Mayfield in Newcastle and Tuggerah on the NSW Central Coast.
Mr Ebert said Sentinel was able to pay cash for the Roseneath and Paget assets after recently offloading a major office/warehouse facility with a long-term tenant at Canning Vale in Perth's south-east for $12,405,000.
"The Canning Vale property was also part of the Sentinel Industrial Trust so that sale has enabled us to immediately continue further acquisition of industrial assets in North Queensland," he said.
"Sentinel has invested heavily in North Queensland which we believe is a region with a fantastic decade ahead of it.
"We are now holding more than $200 million of assets in Mackay and Townsville.
"Cities such as Mackay are the envy of the rest of the nation with low unemployment and residential vacancy rates, while Townsville has fared better through the pandemic than capital cities."
The Roseneath asset, which is leased until May, 2024, is on about 14,008sq m of land with a 639sq m building area.
The Paget property, which has redevelopment potential, is on a land area of just under 20,000sq m, while the vacant building offers about 4400sq m and is ready to occupy.
"We have an existing $120 million property portfolio in Mackay plus more than $100 million of development projects, including industrial, hotel, office and mixed use development projects in the pipeline for Mackay over the next two years," Mr Ebert said.
"The vacancy rate in the primary Mackay Industrial Precinct of Paget is nearing 0%, particularly for warehouses over 2000sq m.
"We already have a number of potential tenants who have inspected the property."