- Irongate Group closed on Lot 3 Belconnen Crescent, Brendale, Queensland.
- Consideration $15,624,000, with initial yield 6.25% (6.13% after transaction costs).
- Commercial property a "hot market".
- Multiple commercial real estate companies completing acquisitions.
- Multiple efforts from companies to raise oversubscribed.
Irongate Group (ASX: IAP) announced to the ASX this morning the acquisition of a Queensland property.
The commercial property half an hour north of Brisbane was announced as a “total purchase consideration [of] $15,624,000 which represents an initial yield of 6.25%”.
Commercial property has been a hot button topic, with many worries work from home would seriously affect the market, even tank it.
East coast properties have also been sold at significant gains, one Sydney hospitality venue providing the seller with a healthy 39% capital gains; Centuria recently purchased two Melbourne properties too.
Irongate states the purchase “comprises an initial payment of $3,885,500 for the land, with the balance to be progressively paid to fund construction of the facility.”
The company announced expected completion for the building in June this year, shares opened at $1.30 this morning.