Rare freehold industrial site in Burleigh Heads sees huge demand in first week of listing

The asset is being marketed and sold by Ray White Commercial Broadbeach sales consultants Ryan Langham and Thomas Clark and is due to go to auction at the end of October.

The rarity of a Burleigh Heads freehold industrial complex has resulted in the number of listing views skyrocketing within the first few days of hitting the market – more than double what the firm would typically see, according to Mr Langham.

“We knew it was going to be a popular site because it’s well under-rented and has a lot of land component to it, so there is plenty of upside for an investor in acquiring it,” Mr Langham said.

“We obviously know that Burleigh Heads is one of the most researched suburbs across the Gold Coast and probably even Queensland to be quite honest.

“We have a lot of investors from Melbourne and Sydney looking at acquiring in the area because of the lifestyle, opportunities, and the infrastructure.”

The vendor built the complex in about 2006, with the current occupancy at 93 per cent, including P&M Plastics & Rubber, who have anchored the site for some 15 years and have committed to another five-year lease term.

Mr Clark said buyer inquiry had been coming in from interstate but also from plenty of local investors who recognised that these types of assets rarely hit the Burleigh Heads industrial sales market.

“It’s probably one of the largest parcels you can purchase in this area [and] with a new tilt slab industrial shed, people can’t really see how they could go wrong with the investment,” he said.

“On the Gold Coast in general, though, this is a large asset to be selling in industrial and especially it’s very, very rare that complexes like this aren’t strata-titled.”

So far buyer interest has included a local residential developer looking to land bank as well as a number of listed companies.

“Burleigh Heads is an extremely sought-after suburb on the Gold Coast, often regarded as the number one searched suburb on key property portals in recent years,” Mr Langham said.

“This tenanted investment represents exceptional value for any investor looking for location and security, with such a tightly held market and very few properties of this size and calibre being offered to the market.”

According to the CBRE Australia Industrial and Logistics Q2 2020 report, the sector had been the most resilient of all asset classes within Queensland during the first half of this year.

More than $450 million worth of industrial property had transacted across the Brisbane market in the first six months of 2020 – up 22 per cent compared to the same period last year, according to the report.

The report said industrial yields had held steady in Brisbane, which was likely to continue due to the significant amount of capital looking to invest given the asset’s strong fundamentals and relative resilience to the impacts of the pandemic.