Sentinel buys workshops
October 27, 2021
SENTINEL Property Group has bolstered its big Townsville holdings by acquiring the headquarters of industrial business Wulguru Steel in a $3.25m sale and leaseback deal.
The property at 352-354 Stuart Drive, Wulguru, was offered for sale for the first time in more than 40 years through Neville Smith of Colliers Townsville.
The asset, which will be leased back to the Wulguru Group of Companies in a five-year triple net lease deal, was bought on a yield of 8.46 per cent.
Sentinel chairman Warren Ebert said the group was heavily invested in Townsville with the Wulguru Steel headquarters taking Sentinel’s footprint in the “business capital” of North Queensland to nine properties.
Mr Ebert said the Wulguru property would be added to the Sentinel Industrial Trust which includes assets in Mackay, Townsville, Brisbane, Mayfield in Newcastle and Tuggerah on the NSW Central Coast.
“Sentinel has more than $100m of assets in Townsville and we are on the hunt for more properties because we have so much confidence in the economic future of the city and the
North Queensland region,” Mr Ebert said.
The group also holds about $150m in assets in the Mackay region.
The Wulguru Steel site offers a total land area of 7082sq m, including 3405sq m of workshop and office area with four 4-5 tonne cranes in the main workshop and two 20kw
solar systems.
The Wulguru Group is a privately owned business which has become one of the biggest steel fabrication companies in Northern Australia.
It comprises specialist entities Wulguru Steel, Abraham Steel + Pipe Fabrications, Archimedes Engineering, Wulguru Rail Maintenance, Rev Cranes and Wulguru Civil.
Established in 2010, Brisbanebased Sentinel has a total national portfolio of more than 60 retail, industrial, office, land, tourism infrastructure and agribusiness assets with a total value of more than $1.3bn.