$20.6 million industrial sale sets a new record on the Sunshine Coast for 2022

A high-profile industrial property has sold for $20.6 million in the biggest transaction for the sector on the Sunshine Coast this year, highlighting the scarcity of large-scale industrial assets across the coastal region.

It is the second industrial property to change hands for more than $20 million on the Sunshine Coast this year.

The Corbould Park property, leased to civil construction materials supply group Civilmart, has been sold through an expressions-of-interest campaign conducted by Colliers’ representatives Nick Dowling, Nick Evans, David Brisk and Daniel Coburn.

The campaign generated more than 113 enquiries from private and institutional investors across the country, leading to six short-listed formal offers for the property which was placed on the market by its owner, a private interstate investor.

Leading Australian property fund manager Trilogy Funds’ Trilogy Industrial Property Trust has been announced as the buyer of the sought-after asset.

“This is the second industrial property to sell above $20 million on the Sunshine Coast this year and the highest price achieved so far in 2022, reflecting both the region’s industrial growth and the acceptance of the Sunshine Coast as an investment target for major trusts and institutions,” said Mr Dowling.

“Industrial property is the most sought-after asset class in the region and the prices being achieved reflect the minimal number of investments of this scale currently available.”

The property, located at 6 Ron Parkinson Crescent, has been sold with a long-term lease of 10 years, expiring in 2032, and lease options that extend to 2052. It comprises a land area of 2.612 hectares and an industrial building of 4,900sqm complete with four 10-tonne gantry cranes.

“The quality of the tenant, the long-term lease and the prime location within the Corbould Park industrial precinct ticked the boxes for potential buyers,” said Mr Evans.

“The property’s tenant supplies a range of concrete civil products and is a business that will continue to benefit from the significant infrastructure and construction spend expected in the lead-up to the Brisbane Olympic Games in 2032.”

The Corbould Park property, offering easy access to the Bruce Highway, is positioned in a high impact industrial zone which allows for 24/7 use by the tenant.

“The corner position with three-street frontages and the low site cover also offer the buyer future development upside,” said Mr Brisk.

Mr Coburn highlighted the shortage of supply in the industrial market on the Sunshine Coast driving strong capital growth in recent years.

“We are witnessing critically low levels of supply across the region, and this has led to some property values increasing up to 120 per cent since 2020,” he said.

“Vacancies are also at critically low levels, with tenants looking for space of more than 1,000sqm to wait up to six months to secure premises.”

Trilogy’s Head of Lending and Property Development Clinton Arentz said “the underlying fundamentals of the property really stood out to us, and similarly we were impressed by some of the key drives of the region.”

“The Sunshine Coast benefits from a broad range of employment sectors and multiple infrastructure and investment projects that will continue to boost the area’s strong population and economic growth,” he said.

The sale of 6 Ron Parkinson Crescent settled in June.