High net worth family, based in Queensland, were seeking to allocate $10m to real estate investments and engaged 1Group to help formulate and carry out the first stage of the strategy.
Through our independent market research, assessment of risk appetite and their current portfolio and comfort levels, our advice was to obtain a light industrial investment for a long-term hold in close proximity to one of South-East Queensland’s three major regions (Gold Coast, Brisbane, and Sunshine Coast).
We recommended they look for a freestanding and freehold title property close to major arterials and surrounded by industrial and/or residential property. The idea was to secure a strong lease covenant, however; the property should have some longer term ‘upside’ via increased NLA or subdivision.
We stayed close to commercial agents in the area to be among the first to know of new properties coming to market. In one instance, we were invited to participate in an off-market expression of interest campaign (which is usually very rare).
We completed extensive Due Diligence on all shortlisted properties which included;
Proactive contact was made regularly with agents, both known and unknown to 1Group. Our client benefitted from being considered a ‘qualified’ enquiry straight away, due to our intervention as their property advisor. On two occasions, we gained access to information two weeks before the asset was released to market.
Leaning on our in-house experts, we analysed approximately 20 properties and participated in multiple sales deadlines (Auction or EOI) and one off-market process across the three regions over a period of six months.
We acquired a suitable property on the Sunshine Coast with the following features;
Our research team identified the property was rented at below market value and anticipate an increase in the rent if the property was to come to market for lease. At the time of acquisition, there was little-to-no industrial property available for lease over 1,000sqm in this area of the Sunshine Coast.
Buying a land-rich asset allows for the option of future development potential to smaller, strata title factory/office buildings which usually rent for a higher rate per square metre and are sought after by small businesses for both sale and lease.
Our clients were very satisfied with the purchase and the positive outlook and future opportunities it provides. We are now onto the next asset in the strategy.
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