MFS Diversified Group has bought half of the Insight Group's state-of-the-art warehousing project at Yatala in an offmarket deal believed to be worth more than $30 million.

The Group has contracted to acquire one of two 20,000 sqm-plus warehouses at Insight Logistics Park, which is under construction on a 8.14ha site in Quarry Road.

The unconditional deal settles in March when the project is due to for completion.

MFS Diversified did not reveal the purchase price for the warehouse but industry sources said it was somewhat more than $30 million.

Brisbane's Insight Group is retaining the other warehouse and said it was close to signing a tenant for the entire complex.

MFS Diversified anticipates that the warehouse acquisition will deliver a 7.5 per cent net yield in the first year.

Chief executive Brent Hailey said the buy gave MFS Diversified a strategically-located major warehouse in the southeast Queensland growth corridor three minutes off the Pacific Highway.

"It is the preferred location for major distribution facilities, providing convenient linkage to major air and sea port terminals," he said.

Mr Hailey said the group was atrracted by the projects cutting edge nature and the fact that there was nothing similar in the area.

"Insight Group has gone to considerable lengths to implement innovative design solutions and construction break throughs that bring an increase in lettable area and greater efficiences and operational and cost advantages," he said.

These include support columns places outside the exterior walls and an interior roof height of more than 10m across a 68m span.

Each warehouse will 20,931sqm of floorspace as well as 4200sqm of awnings.

Each building will have separate entry and exit gates to allow one way traffic flor for large trucks, and separate loading and unloading bays will all-weather protection.

MFS Diversified's Yatala holdings include a large industrial park at nearby Burnside Road.

Insight Director Rod Colwell said the group was negotiating with national companies and was hopeful of securing a leasing commitment within weeks.

Mr Colwell said the Insight had not planned to sell the warehouse but the had "fitted the bill for both parties".

He said the Insight Group was considering similar warehousing projects in Brisbane's western corridor and near Eastern Creek west of Sydney.

Gold Coast Bulletin
Business Friday - Property
Friday, June 29, 2007
page 93