Property investment fund manager Clarence Property is growing its industrial portfolio with the acquisition this week of a tenanted warehouse in Northgate, Brisbane, for $8.475 million.

The property, which is located at 48 Bell-Are Avenue, was purchased with a four year lease with options to Provet, Australia’s leading veterinary distributor and subsidiary of Henry Schein, a Fortune 300 company and one of the world’s largest providers of health care products.

The property has been purchased as a new asset for Clarence’s flagship unlisted Westlawn Property Trust, which boasts more than $400 million in property under management, including a mix of commercial buildings and residential communities.

Clarence acquired its first industrial complex, 45 Alexandra Place Murrarie in the Australia Trade Coast region for $10.3 million in September 2016, and managing director Peter Fahey says the group intends to strategically expand its holdings in this asset class over the coming years.

“We see industrial as the next step in terms of continuing to diversify our portfolio and investing in a space that we believe will be increasingly in demand as technology continues to improve efficiencies and management of warehouse complexes,” he said.

“Broadly speaking this latest acquisition fits our strategy of acquiring properties around the $10 million to $30 million bracket in South East Queensland and Northern New South Wales, which continue to experience solid growth backed by market factors including relative affordability and infrastructure improvements.

“Bell-Are Avenue was chosen because it is a modern facility in one of Brisbane’s key industrial areas, and we were attracted to both the WALE and yield this property provides.

“The property was purpose built for Provet in 2007 and there is a five year option on the remaining tenure. Having a blue chip tenant in place is another part of our strategy which gives confidence to our investors.”

The property was sold by Ralmont Pty Ltd and was negotiated by CBRE’s Nick Witheriff and Dan Munnich.

Mr Munnich says Clarence Property was attracted to the strong tenant covenant and income stream available at 48 Bell-Are Avenue.

“This, along with the A-grade corporate image the building presents were key drawcards for the purchaser,” he said.

“Clarence was able to secure the building for a yield of 8.15% due to the tenure remaining on the lease (sub 5 years) and clean purchasing terms offered to the vendor.

“Clarence Property is looking to grow its Westlawn Property Trust fund and have an appetite for clean income producing properties across the industrial, retail and commercial asset classes.”

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