Investors pocket $1m-plus jump in value off busy Repco site
REPCO’s Kedron site has been sold by the syndicate of private investors who bought it in 2013. Picture: Google.
A property occupied by Australia’s largest auto parts and car accessories retailer on one of the busiest roads on Brisbane’s northside has been snapped up within a week of the vendor deciding to sell.
The property at 192 Gympie Rd, Kedron, which is occupied by Repco and also features a GOA billboard, was purchased late last year by Tuncil Park Investments for $3.35m.
The deal was negotiated by Jacob Heinke and Hayden Ryan of Knight Frank on behalf of the vendor, a small syndicate of private investors.
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Jacob Heinke and Hayden Ryan at the building they sold in Kedron. Picture: Tertius Pickard
The property has 507sq m of net lettable area on a 1677sq m site, with 10 car parks and Repco has a lease in place until 2027, with four five-year renewal options after that time.
Mr Heinke said the purchaser was drawn to the quality of the investment, including its location on one of Brisbane’s busiest arterial roads, the strength of the covenant and the property’s future development potential.
“This property has huge exposure to Gympie Rd, upon which over 65,000 cars pass by every day, which is an extremely attractive location to tenants,” he said.
“The investment also had a very secure income stream with a strong lease to two quality national tenants, and being zoned low-to-medium residential it provides future potential to redevelop up to three storeys on the site, which further underpins the value of the land.
“Within one week of receiving the vendor’s instruction to sell, we swiftly secured a cash contract, subject to a 21-day due diligence period, for this asset.”
According to CoreLogic the property last changed hands in 2013 for $1.932m.
Mr Ryan said there were many other investors seeking similar opportunities when they become available.
“Given recent economic challenges, many investors have been waiting on the side lines however we feel as though when the right opportunities present themselves, investors are willing to pay a sharp price,” he said.
“Similar assets in strong locations leased to national tenants continue to outperform the market, particularly at this price range.
“In this case we were able to match the right opportunity to the right buyer, which was instrumental in achieving a successful sale and an optimal outcome for the vendor.”
