A free-standing industrial property at Hervey Bay in Queensland, occupied by a Bunnings Trade Centre, has been secured by a private investor for $2 million.

The 80 Islander Road property, marketed by Peter Cappsand Alex Smithof Savills, was sold by negotiation post-auction at an initial yield of 8.85%.

The 4,574sq m site is strategically positioned close to major arterial road networks and just minutes from the Hervey Bay CBD. It provides prominent exposure to passing traffic and dual crossover with truck access and container set down and unloading area.

An 1,891sq m Bunnings Trade Centre has occupied the site since 2009 and has taken a new five-year lease option from August 2015, with four further options remaining. The building features five high-clearance electric roller shutters, three-phase power, high bay lighting, and front and rear all weather awning.

Mr Capps said the property was highly sought-after by a wide range of investors, given its prominent positioning within the prime industrial precinct of Hervey Bay.

'This was a very rare offering of a quality free-standing industrial property in a high growth region, underpinned by the security of a blue-chip lease covenant to Bunnings,' he said.

'This is exactly the style of solid investment property that buyers are actively seeking out in the current market, creating strong pent-up demand for when such offerings are released. There is currently a real lack of this type of stock on the market, but plenty of buyers are looking to capitalise as soon as well-located quality opportunities arise.'

Mr Smith said the $2 million sale of the Hervey Bay property at an initial yield of 8.85% represents very good investment buying.

He said the Bunnings Trade Centre is strategically located in one of the fastest growing residential and tourism areas on the Queensland coastline, and provides prominent positioning in the region's premier industrial and commercial precinct.

With the Bunnings Trade Centre only occupying 41.3% site coverage, the property could accommodate a range of future users, Mr Smith said.

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