A manufacturing plant at 44–56 Potassium Street, Narangba, has sold for $17.4 million to local private investors. The sharp 4.13 per cent net passing yield reflects a strong tenant and the site's development upside in a growth corridor north of Brisbane.
Five years ago the property failed to sell. Since then the rent has risen by about 27 per cent and buyers have priced in its long-term land value.
The deal at a glance
- Asset: 44–56 Potassium Street, Narangba QLD (about 35 km north of the CBD)
- Price: $17.4 million
- Yield: 4.13 per cent net passing
- Site: 2.4 hectares, General Industry, with frontage to Neon and Radan streets
- Building: 9,555 sqm plus about 500 sqm of office
- Hardstand: nearly 5,000 sqm, with 40 car spaces
- Tenant: Cubis Systems (Infrastructure Products Australia), part of Ireland-based CRH
- Rent: $718,980 a year
- Agents: Colliers (James Wilkie, Angus Yule, Hugh Fletcher, Beau Newman)
A second chance that paid off
The property was marketed in 2021 through another agency and failed to sell. It was then leased to two tenants returning about $567,000 a year. Today's single-tenant rent is about 27 per cent higher and the sale price reflects that improvement.
A tenant with global backing
Cubis Systems makes underground infrastructure products on site. Its parent, CRH, is one of the world's largest building materials groups. For investors, a tenant like that adds security, which is a big part of why the yield came in so tight.
Paying for the future
The site sits in the Narangba East planning investigation area, which is studying future land uses, jobs and infrastructure in the corridor. With 2.4 hectares of land and three street frontages, buyers were paying for income today and a strong position if land uses change.
How it compares
A nearby benchmark is an industrial investment at Pinkenba, near the airport, which sold for about $16.8 million at a 5.55 per cent yield. Narangba's lower yield shows how much investors valued the larger land holding and its future potential.
Brisbane's northern industrial corridor
Narangba is part of the Moreton Bay region, one of the fastest-growing areas in South East Queensland. Industrial estates along the Bruce Highway corridor serve both the northern suburbs and the Sunshine Coast and they have become popular with manufacturers and trade businesses priced out of older inner-city precincts.
As the population grows, demand rises for local manufacturing, building materials and infrastructure products like those made on this site. That helps explain why investors were willing to accept a lower yield. They are betting on rent growth and on land that may be worth more under future planning outcomes.
What it means for the market
- Brisbane's northern growth corridor is drawing strong investor demand
- Land-rich industrial assets are trading on future value, not just income
- Rents in well-located industrial property continue to rise
Lessons for owners
- Re-leasing can transform value: stronger rent and covenant turned a failed campaign into a sharp sale
- Planning studies matter: buyers notice when an area is being looked at for change
- Tell the land story: aerials and site plans help investors see the size and flexibility of the holding
What to watch next
Watch the outcomes of the Narangba East planning investigation and whether more industrial investments in the corridor trade on similar yields.
