Government tenant seals deal

A long-term government tenanted property south of Brisbane was snapped up by a Gold Coast investor after it was removed from auction because of initial interest from syndicators.

The property at 5-9 Juers St, Kingston, sold for $5.7m after a deal struck by Burgess Rawson’s Glenn Conridge.

Mr Conridge said the property had “good bones” and was in a high-profile location adjoining a 7-Eleven service station and Zambrero drive-thru restaurant on the corner Kingston Rd.

Mr Conridge said they had originally planned to auction the property.

“We got a lot of interest from people who wanted to go into a syndication so they could not bid unconditional at an auction because they all wanted a 30-day due diligence period,” Mr Conridge said.

“So we withdrew it and then a whole bunch of new people popped up. We got five written offers to purchase and the end buyer was a woman who jumped in ahead of everybody who said give me a contract and I will sign it tomorrow. Everyone loves a government tenant.”

The modern high-quality tilt panel constructed building was purpose-built in 2007 for the Department of Children, Youth Justice and Multicultural Affairs.

On a 3896sqm site the 906sqm office building produces a net income of $329,162 a year and the government has renewed a five-year lease plus option to 2028. The deal realised a 5.7 per cent yield.