IndustrialKirsten CrazeFri 06 Nov 26
Clarence Property Trades $38m in Industrial for Its Next Big Play
Clarence Property has offloaded $38.4 million in Brisbane industrial assets as the fund manager recycles capital into other sectors, hot on the heels of a $90.2-million aged care portfolio acquired earlier this year.
In the first of two deals, the privately owned property funds manager and developer secured $15.9 million for its 4651sq m logistics facility at Northgate in the River City’s inner north.
Clarence Property chief executive Simon Kennedy said the sale of 48 Bell Are Avenue, sold on a passing yield of 5.12 per cent and currently leased to veterinary supplier Provet, demonstrated the continued demand for solid industrial assets in South-East Queensland.
Clarence Property head of capital transactions Ben Somerville said the sale was part of the group’s ongoing capital recycling strategy.
“We are always looking at where we can unlock value within the portfolio and redeploy capital into new opportunities,” he said.
“Northgate has performed well for the fund, and this sale allows us to crystallise that value and reinvest into opportunities where we see strong potential for growth.”
Michael Callow of CG Property brokered the transaction on behalf of Clarence Property.
“The Sydney-based buyer was attracted to the rental and capital growth potential of the property over the next three to five years as the lease approaches expiry,” Callow said.
“Northgate and Banyo have been on a real run recently, with a number of assets trading in the sub-$20 million to $25 million range.”
In July, two major commercial assets sold on Toombul Road, Northgate for a combined $10.2 million through Stonebridge Property Group.
Half of that transaction included a 2594sq m site housing a Starbucks cafe and the neighbouring 205sq m 7-Eleven.
A double deal at Banyo in June had two neighbouring sites at Weyba Street, totalling approximately 2ha, fetch a collective $11.9 million.
Clarence Property’s second sale was for an asset half an hour away at Richlands, an established industrial and logistics precinct in Brisbane’s outer south-west.
The fully-leased 13,770sq m corporate-grade office and warehouse facility at 18 Macgregor Place with a net lettable area of 7669sq m sold for $22.5 million.
Held in Clarence Property’s flagship Clarence Property Diversified Fund, the property was sold on an initial yield of 5.125 per cent and was brokered by Mark Clifford and Elliot Ryan of Knight Frank.
Kennedy said industrial and commercial property in South-East Queensland continue to perform strongly.
“Richlands is a well-established, infrastructure-connected precinct where supply is constrained and tenant demand remains high,” he said.
Somerville said that the divestment of the two sites followed a period of significant local investment by the business, including a $90-million acquisition in April of four aged care assets totalling more than 450 beds across the Gold Coast, Brisbane and Sunshine Coast.
The deal through Clarence Property’s newly established Clarence Property Aged Care Fund acquired a portfolio of four sites with long term leases to Bolton Clarke.
Founded in Grafton in 1994 as a regional property investment business, Clarence Property has evolved into a diversified funds manager and developer with a portfolio worth more than $950 million in assets under management across commercial, retail, industrial, aged care and residential projects throughout South-East Queensland and Northern NSW.
