Melbourne-based Gibb Group is set to breathe new life into a Woodcock St business park developed by the ill-fated Insight Group in 2009.
Gibb group, headed by property developer and asset manager, Matthew Gibb, has just settled on the purchase of the property, which has been in receivership, and intends to undertake key improvements including building a new $1 million access road.
Market sources suggest Gibb Group snared the assets, comprising 30 new tilt-slab office warehouse units adjoining industrial land on 8.5Ha, for just over $10 million – around a third of the land and development costs.
Mr Gibb said they were attracted to Townsville by its strong demographics including above-average population growth of around 2 per cent. He said the business park, with a few exceptions, had been well designed and that with some further work could fill a need in the market for small industrial warehouse sites.
“We think there is a significant amount of net-up demand for small industrial warehouse space,” he said.
While there are six existing tenancies, most of the units have never been used.
Mr Gibb said they intended to strata title the complex and sell the units as industrial warehouses although they would lease and retain some units.
The units, which ranged in size from 206sqm to 1300sqm, would be priced from $1250 to $1500 per sqm with most units averaging between $400,000 and $800,000. Leasing rates would start from $110 per sqm net.
The vacant land offered for sale in four lots ranging in size from 1.2Ha to 1.4Ha although the new owners would also respond to inquiries for pre-leased development.
Mr Gibb said they were in discussions with authorities on developing a new access road off Woolcock St and had set aside $1 million to complete the work with the aim of using local contractors.
A further $500,000 has been set aside for general improvements.
“We are working on repositioning the industry park through undertaking a significant rebranding process, which will then spearhead our sales and leasing campaign.” he said.
“Another key element of our strategy will be to build an access road from the Bruce Hwy to join up with the industry park.
“This is a significant investment and will add value to the unit complex.”
The property was put to the market last year under the instructions of receivers McGrath Nicol.
Knight Frank Townsville agents Michael Quinlan and Glen Winter negotiated the deal.
The property at 547-593 Woodcock Street comprises 30 office-warehouse units in five buildings over 4.2Ha with 234 on-site car parks, access lanes for trucks and set-down areas for containers. Another 4.2Ha of vacant land adjoins the business park.
Townsville Bulletin – 4 April 2012