3 Mineral Sizer Court, Narangba, QLD
Building type: Industrial
Building area: 2,563m2
Land area: 5,339m2
How Did Prosper Group Assist Their Client?
Prosper Group’s client had an original investment brief to purchase an industrial investment in Sydney for under $5 million and close to a 7% net yield return. Due to the lack of good opportunities and the low yields in Sydney, Prosper Group advised their client to consider this property in Brisbane. Initially their client was hesitant to invest in a market which they had no knowledge or experience. Prosper Group with their years of experience in both Sydney and Brisbane gave their client the comfort to proceed with the purchase.
The main value to their client was that if they purchased this type of investment with; such a strong tenant (Government), new building, and great location in Sydney, then the purchase price would have reflected a net yield of between 5% and 6%.
This was a considerable saving of between $500,000 and $1,500,000.
The purchase of this property also offered their client diversification within their commercial portfolio as all the existing properties were located in Sydney. This not only diversified their portfolio risk across two capital cities in Australia but also provided land tax benefits.