Property fund manager Centennial has bought up a site in Brisbane’s Australia TradeCoast precinct, expanding its industrial and logistics portfolio and setting a new record rental rate for the precinct.
The 13,270sq m site at 680 MacArthur Avenue at Pinkenba, located between the airport and the river, sits next to two other sites owned by Centennial.
A 34,230sq m new estate named the MacArthur Industrial Estate will now contain the previous sites and the new acquisition.
It is valued about $50 million with Centennial acquiring the site at 680 MacArthur Avenue for $15.6 million.
The site includes an existing industrial and logistics facility with 3810sq m of gross floor area and a 5380sq m hardstand area.
Colliers’ industrial national director Anthony White and Jared Conway managed the sale.
National vehicle repair group Action Smart Group leased the site soon after the sale for a record TradeCoast rental rate of $205 per square metre across a five-year lease.
Consolidation was key, according to Centennial Industrial and Logistics chief executive Paul Ford.
“The purchase of this site was tactically driven to enable us to consolidate our two adjoining industrial sites (bordered by MacArthur Avenue, Parker Court and Savage Street) into the one estate to create an institutional grade asset of scale,” Ford said.
“This transaction allows us to continue executing our growth strategy of securing modern, functional mid-space assets, with flexibility for upgrades and expansions, that are located within inner-ring and urban land constrained locations.”
Colliers sold the site on behalf of a private investor. Low vacancy rates and a lack of development boosted interest in the site.
“Competition for the site from prospective tenants was also spirited during the leasing campaign, which in large, was driven by the sub-one per cent vacancy rates and limited new developments coming onstream in the Australia TradeCoast precinct,” White said.
The acquisition expands Centennial's logistics and investment portfolio to 63 assets nationally with a value of $1 billion, while its national development pipeline has in excess of $350 million.
Industrial and logistics sites near key growth areas and within CBDs and city centres have been hard to find despite keen interest from developers and investors.
Brisbane’s Australia TradeCoast precinct has been popular with investors and developers wanting to get ready ahead of the 2032 Olympic Games.
International capital has also been tipped to find its way into the sector in 2023.
