- Irongate Group (IAP) has entered into a contract to acquire an industrial facility in Pinkenba, Queensland
- The property consists of 1852 square metres of office and warehouse accommodation and 33,615 square metres of high-quality hardstand
- Irongate Group will pay $24.75 million for the property, funded through the company’s existing syndicated debt facility
- The company expects the deal to close by March 22, 2021
- Irongate Group closed 1.18 per cent in the red to trade at $1.26 per share
Irongate Group (IAP) has entered into a contract to acquire an industrial facility in Pinkenba, Queensland.
The property covers 1852 square metres of office and warehouse accommodation and 33,615 square metres of high-quality hardstand.
The property was constructed in 2018 and is currently leased to Grays Australia, the biggest industrial, auto and commercial e-commerce business in Australasia.
The property’s lease expires in March 2028 and is fixed at annual escalations of 3.5 per cent.
Irongate Group will buy the property for $24.75 million. The company will fund the purchase consideration and all related transaction costs through its existing syndicated debt facility.
Irongate Group’s CEO, Graeme Katz, said the property provides the company with a strategic land holding of almost four hectares in the Australian Trade Coast Precinct.
“Pinkenba is immediately adjacent to Brisbane Airport and the area will benefit from infrastructure upgrades associated with the new Brisbane International Cruise Terminal,” he said.
“We believe the Brisbane industrial sector currently offers relative value and the acquisition will increase IAP’s exposure to industrial property to 32 per cent by both income and value,” he added.
The acquisition is expected to settle on March 22, 2021.
Irongate Group closed 1.18 per cent in the red, to trade at $1.26 per share.