A fully leased Mount Isa warehouse has sold for $2,000,000 on an 7.75% yield at Burgess Rawson's Flagship Portfolio Auction in Sydney last month.
The property, situated on a 5327 sq m site, is leased for $155,000 a year (with GST) net plus compounding 2.5% annual rent increases.
The 1A Traders Way warehouse is secured on a recently renewed 10-year lease to global conglomerate BOC Ltd who have occupied the property since it was built in 2004.
According to Burgess Rawson Sales and Leasing Executive, Craig Chapman, the asset's security as a long-term investment proved a strong investor drawcard.
"A renewed 10-year lease to a longstanding tenant offers the new buyer peace-of-mind around the asset's security as a long-term investment - an ideal 'set and forget' addition to their regional portfolio," Mr Chapman said.
"The tenant, BOC Group, is Australia's leading gas and welding equipment specialists, backed by a global presence in over 100 countries.
"This multi-million-dollar sale sets a positive start for the property market in 2020, particularly in regional centres where places like Mount Isa are cementing themselves as strong investment hubs," he said.
The property is comprised of a well-presented purpose-built facility, including retail showroom and offices, mezzanine office, warehouse and loading dock, and parking areas for staff and customers.
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