Land shortage drives investment in Zillmere

Based on land availability projections, a private interstate investor has snapped up a Zillmere land-rich industrial investment representing an 8% return.

The off market transaction was brokered by Savills Industrial & Business Services Director, Callum Stenson and JLL’s Industrial Executive Fraser Power and Director Nick Bandiera for $8.751 million on behalf of a private investor.

Being a first time investor in the Brisbane industrial market, Mr Stenson said their new strategic alliance with SA1 Property assisted with sealing the deal on this occasion.

“The software enabled us to demonstrate a tightening of available land in the immediate Northern Brisbane industrial region over the coming years, which highlighted the value of the opportunity,” Mr Stenson said.

According to JLL’s Fraser Power, the Sydney based purchaser identified the site as a strategic investment.

“The purchaser saw future development upside in a core industrial precinct that has long been deprived of regular shaped land parcels of this size,” he said.

The 1.9ha site stood out as a truly unique opportunity through its low site coverage, improved 6,970sq m heavy duty concrete hardstand and regular shaped site characteristics all underpinned by a holding income of $708,831 per annum for 5 years.

With growing land values in the Northern Industrial precinct, JLL’s Nick Bandiera said the sale reflected a land rate of $460/sq m.

“We have seen three consecutive quarters of growth particularly in the inner-north where land supply was becoming very scarce,” Mr Bandiera said.

Mr Stenson confirmed that this sale demonstrates that there is value within the Brisbane Industrial market if purchasers are prepared to look slightly outside what might be their normal search parameters.