Industria REIT sells Brandl Street in Brisbane

Industria REIT has sold its 7 Brandl Street, Brisbane Technology Park, for $25.5 million to a domestic buyer.

The sale was negotiated CBRE agents Mike Walsh and Peter Court who described it as a well leased investment grade product.

The national marketing campaign delivered a total of six offers upon close which was further improved to a cash unconditional position from the successful purchaser.

Offers also came from two offshore parties presenting sharp bids at close of the campaign.

Peter Court said he expects continued widespread interest from ‘new’ entrants into the Brisbane market across a range of asset classes which bodes well for 2016 transaction volumes.

The sale of 7 Brandl St in the Brisbane Technology Park for $25.5m was above the book value of $23.15m (c8.4% cap rate).

The asset has a 5.2 year weighted average lease expiry with a new lease and lease extension completed in 2H16 with Fujitsu (the asset was 88% occupied at December 2015).

Settlement is due on 31 July 2016 with proceeds to be used to pay down debt.

In 2014 Industria REIT (ASX code: IDR) sold 53 Brandl Street, Brisbane Technology Park for $10.25 million after an unsolicited offer significantly above the 30 June 2014 book value of $9.20 million.