Garda Capital sells TradeCoast office building for $17.3 million
A private investor has bought the TradeCoasts’ Gateway Office Park. Photo: Supplied

Garda Capital sells TradeCoast office building for $17.3 million

ASX-listed Garda Capital has sold a stand-alone office building in the Queensland TradeCoast’s Gateway Office Park for $17.3 million.

The property, Building 2 at 747 Lytton Road, Murarrie, has a weighted average lease expiry (WALE) of 3.1 years, which follows a successful year-long re-leasing campaign to full capacity.

The four-level, 3346-square-metre property includes NextFleet Australia and Youi Insurance as two of its seven tenants and returns an annual holding income of $1,366,000 million.

“Testament to the efforts of Garda in positioning 747 Lytton Road in the leasing market, the asset has attracted a strong tenant profile,” selling agent Savills’ Jack Morrison said.

“Many of whom are first-term occupants with a specific need to be located in the precinct, a huge draw card for investors of all classification.”

Mr Morrison brokered the expressions of interest sale with colleagues Shaw Harrison and Peter Chapple. A private investor bought the property.

Demand for fringe Brisbane office properties and outer-Brisbane business parks continue to grow, which means developers and investors such as Alceon will continue to hunt for new development opportunities.

Earlier this year, Alceon bought a hectare of land in Robina on the Gold Coast for a new business park and signed up builder Metricon as an anchor tenant.

Melbourne-based property fund manager Forza Capital also bought a fringe- market three-level office building at 55 Russell Street in South Brisbane for $23.65 million. The 4081-square-metre corner building was acquired on a fully leased yield of 6.8 per cent.

The growth in office demand stems from the improvements in the Queensland economy. Knight Frank’s March quarter update says the strong tranche of growth in the professional and technical services has been boosting CBD and fringe office demand.

Separately, the steadily active Garda has also just acquired a 4.1-hectare undeveloped industrial site in Wacol in south-west Brisbane for $5.9 million as an asset for its fund, Garda Diversified Property Fund.

The company and its partner Development Directive have lodged plans to build three warehouses on the site.

Last year, Garda Diversified Property Fund, which has almost $350 million of industrial and commercial property assets under management, tapped investors for a $25 million equity injection.

The group listed in 2015 and is based in Queensland.

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