industrial area park zone with low buildings
Source: Pixabay
  • 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.

Excepting retail, many companies in the commercial space recently posted healthy half-yearly figures, with some like Primewest and APN Industria oversubscribed by many millions in raising efforts.

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.

You May Also Like

Debt battle sends The Agency Group into voluntary administration

ASX listed Perth real estate firm now faces uncertain future following…

RNY Property Trust delists after major vote

Sydney real estate firm voted off the ASX after 2 years suspension from trading…

Seashells to operate Middleton Beach Hotel

Seashells Hospitality Group have been announced as the operator for the 80 plus room facility…

Ultima United capital raise buoyed by interest

Perth property developer readies for growth, hoping for a $20M+ raise…