- Property adjoins Cairns airport
- 2,155sqm building on a 5,489sqm site
- Acquired by NSW-based investor
A New South Wales based investor has purchased 420-422 Sheridan Street in Cairns North from a Victorian investor following an expressions of interest campaign run by Knight Frank in conjunction with CBRE.
The two-level property is a purpose-designed and built facility for the Australian Federal Police (AFP).
Sold for $17 million, the property is about 15 minutes from the Cairns CBD, adjoins the Cairns local and international airport, providing the AFP with ease of access to critical transport infrastructure.
It consists of a 2,155 square metre building on a 5,489 square metre site with around 80 car parking spaces. It was built in 2014, and constructed to accommodate a 5-star NABERS rating.
The property is leased to the Australian Federal Police on a 15 year lease, with two five year options leading up to an expiry of 2039.
The sale price of $17 million reflected a yield of 6.5 per cent, based on the passing net rental.
Knight Frank’s Christian Sandstrom said the campaign resulted in good interest from a wide range of private investors and syndicators, generating more than 80 enquiries in total.
“At the close of the campaign seven offers were received and terms were agreed with a private investor from New South Wales on a cash unconditional basis,” he said
“This investor already owns a portfolio of government-leased assets and was attracted by the calibre of the Commonwealth tenant, high quality of the building and the fact that the property was purpose- designed and built for the AFP’s specific accommodation needs.
“In addition the property had a seven-year WALE and remaining options for 10 years.
“The Melbourne-based owners were extremely pleased with the result especially given the two per cent increase in the official interest rate since they decided to divest the asset, which had been in their family since 2014.”
Mr Sandstrom added the Cairns market was performing strongly, supported by tourists from within Australia during COVID and now overseas visitors beginning to return to Far North Queensland and strengthening local businesses.
“As well, investors are looking to diversify their asset portfolios and regional markets like Cairns and Townsville are becoming targets given the quality of the investment opportunities and significant infrastructure being spent in these regions.”
