Fund cleans up with laundry company lease deal

Fund cleans up with laundry company lease deal. 

A national laundry company has secured an office/warehouse, south of Brisbane, that will be substantially modified for its operations.

Adelaide-headquartered KC Dry Cleaning Group has a 10-year lease on the 9,448sqm building at 70 Darlington Drive, Yatala, in a deal struck by Integrated Property Partners’ (IPP) Greg Russell.

The building was originally purpose-built for steel fabri­cation, however, new owners Centennial Industrial & Logistics (Centennial) will refit the building to accommodate the substantial laundry operation. Mr Rus­sell said the location was one of its biggest attractions for KC Dry Cleaning.

Centennial bought the 4.69ha site last year through IPP for $12.1m and will also specula­tively build a $40m 10,000sqm warehouse and distribution facility which complements an existing office building. It will be completed in the second half of next year.

Centennial Executive Director Paul Ford said the KC Dry Cleaning lease was a good fit within the fund manager’s strategy.

“This transaction allows us to continue executing our strategy of acquiring modern and highly functional assets with flexible improvements at close to or at land value which enables us to enhance investor returns,” he said.

“Securing the long-term lease commitment allows us to commence construction well ahead of schedule.”

Rental rates for similar fa­cilities in the Yatala Enterprise Area are around $110/sqm.

Mr Russell said Centennial recog­nised the significant function­ality, options and value-add potential the site provided.

“Their scheme to integrate the existing high-quality office into the new development is extremely innovative,” he said.