Bosch Rexroth Pays Approx. $5M for Office/Warehouse in MetroWest Business and Technology Park, Brisbane, Australia

A DEVELOPER has notched up a two sales with a combined value of $7.275 million in a business park in Brisbane’s southwest.

The sales at the MetroWest Business and Technology Park at Seventeen Mile Rocks were the seventh and eighth in the estate for Garry McNamara’s Industry Development Group.

Mr McNamara said he has one lot left over and hoped construction would start on it in the next few months.

“We have the attitude that if you build the right thing in the right place there is always a market for it and I think that is what we’ve found out in MetroWest,” he said.

“We build affordable, good-looking little freestanders, which is what the market wants.

“To me a good industrial is a big box with a pretty face in the front. We also don’t over-build on the site, which seems to work as well.”

An investor paid about $5 million for an office/warehouse at 104 Bluestone Circuit in the estate. Engineering company Bosch Rexroth Australia has precommitted to the building, and it will be its new head office.

The property is 5723sq m with a building area of 2645sq m, including an office area of 645sq m.

According to industry sources, leasing rates for the estate are around $140/sq m to $150/sq m, with the 104 Bluestone Circuit deal yielding about 8 per cent. In the other deal, owner-occupier Mintclub Realty purchased 83 Bluestone Circuit for $2.275 million.

The company is affiliated to Stauff Corporation, one of Australia’s principal players in the fluid power industry and related markets.

The property has 2370sq m of land which will be home to 1263sq m of building with an office area of 278sq m. It will be Stauff Corporation’s new Queensland head office, after relocating from nearby Darra.

Jones Lang LaSalle’s Chris Cash and Gary Hyland negotiated the deals. There are five blocks of land left in the 40-lot estate.

In the past six months there has been more than $30 million in construction activity being completed or were in progress.

Mr Cash said Bosch and Stauff were drawn to the MetroWest Estate by its corporate appeal, staff amenity and transport. “There are not a lot of assets considered blue chip under that $5 million price range,” he said.

“So yields are generally in the highs 7s and 8 per cent for that style of product.”

“There is just not a lot of supply at the moment so when these things come up they tend to be fairly competitively contested.”

Mr Hyland said neither of the purchasers required any funding.

“So both projects were able to move forward without the need for valuations or banks,” he said.

“The market is there wanting to buy and invest, however the banks and valuers need to take their respective feet off the brakes to facilitate more deals and let the market find its real potential.”

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