Smithfield Property pays $3.9 million for New Farm value asset
Smithfield Property has purchased a mixed-use gem with multiple value add options for $3.9 million in Brisbane’s New Farm.
The property, at 599 Brunswick Street, offered a diversified income stream with a complimentary mix of retail, office and 16-room boarding house.
It was partially tenanted with half of the ground floor retail vacant and a short WALE of 1.05.
The property was sold by Ray White Commercial (QLD) Retail Investment Sales Michael Feltoe.
“The property had some unique features that really divided buyers into two camps. There were three easements and council requirements that significantly restricted development upside of the car parking land," Mr Feltoe said.
“The buyer acquired the asset on an eight per cent yield that reflected the long-term vacancy, overall short-term income security, and the amount of work required to bring the property up to standard.
In the last two years, the property had been formally on the market for sale twice with two other agencies, and had been under contract and fallen over a few times in some off-market processes by other agencies.
“Instead of doing the same thing again and expecting a different result, we recommended marketing the asset for sale via auction which generated a huge amount of enquiry (147).
“Smithfield Property were the perfect buyer due to both their track record with properties that need creative solutions and their requirement to relocate their office into the vacancy."
