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Sydney property investment manager Centennial Property Group has spent almost $16 million to secure a significant industrial site in the Australian TradeCoast in Brisbane, next to one of its existing assets.
The off-market $15.8-million purchase of the 10,660sq m site at 29 Parker Court at Pinkenba secures Centennial’s 2.11ha $30-million landholding in the tightly held industrial precinct.
Centennial has more than $1-billion in assets under management. The 5584sq m shed will sit within the group’s Enhanced Value Fund III.
The vacancy rate is 1.9 per cent for sheds with a gross floor area greater than 3000sq m in the Australian TradeCoast precinct with major occupiers including Amazon, BevChain, Reece Group and Oztrail.
The “strategic acquisition” was underpinned by a new five-year lease to national bathroom, laundry and kitchen product importers Argent Australia.
Centennial chief executive for industrial and logistics Paul Ford said Centennial had a unique proposition for realising value in mid-space industrial.
Ford said they focused on acquiring assets in infill locations, refurbishing them and creating core institutional grade assets.
“The 29 Parker Court acquistion continues to demonstrate our ability to acquire assets off-market, execute our ‘mid-space’ strategy and focus on inner-ring land constrained locations,” he said.
“In addition, the purchase adjoins our existing property at 670 Macarthur Avenue, and will allow us to unlock additional value by creating an institutional grade asset by increasing quality, optionality and scale.
“Importantly the acquisition bolsters our strong national investment portfolio, with 57 industrial and logistics assets in Queensland, New South Wales, South Australia and Victoria.”
The amalgamated site comprises three buildings and four tenancies in the industrial precinct, which is close to Brisbane Airport and Brisbane’s trade port.
The national industrial vacancy rate is below 2 per cent and CBRE’s initial indicators for the industrial market in the first quarter of 2022 show rental growth, especially in Sydney.
National floorspace take-up was at about half the rate of the same quarter last year at 181,477sq m, but CBRE research indicated this was a reflection of a record low vacancy rate.
About 2.7 million square metres of floorspace was expected to be added to the market in 2022.
About 57 per cent of this stock is currently under construction and expected to be delivered across the second and third quarters, with just 8 per cent being delivered in the first quarter of 2022.
