With the intention of expanding their current operation, Kitchen Connection has purchased a large industrial asset at 97 Trade Street in Lytton for $8,000,000 with Savills Shaw Harrison introducing the owner-occupier to the property.

The 6,600sq m facility, which comprises 6,000sq m of warehouse and 600sq m of corporate office over two levels. The property, marketed by Cushman & Wakefield’s Michael Callow, realised a building sale rate of $1,212/sq m.

With nine retail showrooms across South East Queensland, Kitchen Connection purchased 97 Trade Street in order to establish a third-party manufacturing facility and head office to their national operations. The acquisition will now enable them to further expand their footprint of showrooms and provide a higher customer service level to their customer base.

“Kitchen Connection had been actively looking for a new site for a while,” Savills Associate Director of Industrial and Business Services in Queensland, Shaw Harrison said.

“Their initial requirement was for a 4,000sq m building, however after being shown multiple opportunities in the area, they made the decision to go with 97 Trade Street, a much larger facility, as it offered competitive pricing for an asset of its nature and the opportunity for future expansion,” he said.

“97 Trade Street was the perfect fit for Kitchen Connection as it will allow them to implement their Queensland manufacturing strategy and enable them to have separate, dedicated areas within the building for the business’ distribution and manufacturing divisions.

“The vendors were over the moon with the outcome. It was a sentimental building for them to let go, as it is one of those truly unique properties with all the added extras that make it special. It was a great result for both parties and Savills were proud to have introduced the buyer on this occasion.”

Mr Harrison said the Brisbane industrial market had witnessed an increase in owner-occupier activity since the beginning of 2017 with many buyers actively seeking properties.

“A greater number of long-term tenants are considering acquisition due to the interest rate cycle and the biggest challenge we have found in the wake of this surge in demand, is sourcing quality stock,” he said.

“We currently have an expansive list of active buyers with one of the tightest stock levels seen in years. If quality stock is on the market at the moment, it has no issue selling.