Developer Hines’ Asia Pacific fund has begun an expansion into the cold storage subsection of the industrial market with a new acquisition in south-east Queensland.
The global property manager’s Hines Asia Property Partners (HAPP) settled on its acquisition of the 11,175sq m site at 31 Lahrs Road at Ormeau after construction on the site was completed.
GGC Homes run by Patrick Gay developed the warehouse complex for HAPP ahead of the January settlement.
Part of a key industrial precinct at Ormeau, 34km north of Surfers Paradise, the site has good connections via the M1 motorway to Brisbane, the Gold Coast and regional Queensland.
The acquisition is HAPP’s second in the state and its seventh in the industrial and logistics market in Australia—but its first in cold storage.
Cold storage sites are key for supply chains with the ability to store food, vaccines and other goods but are often tightly held, according to Hines Australia industry and logistics head Alysia Reilly.
“The development at Ormeau is a strategic opportunity to capitalise on the current dislocation in supply and demand dynamics, with the latest leasing statistics showing an extremely tight leasing market across the entire east coast of Australia,” she said.
Hines chief investment officer for Asia Chiang Ling Ng said demand had increased post-Covid.
“We are seeing increased demand for the cold storage sector not just in Australia, but across the Asia Pacific as consumer appetite continues to shift post-Covid towards online grocery and meal deliveries,” she said.
“Investments such as these are vital as economies are recognising the importance of addressing the shortage in supply of reliable refrigerated facilities, particularly for the storage of fresh produce, vaccines and other non-discretionary goods.”
Corelogic records show that the company Lahrs Road Pty Ltd bought the site in May 2022 and lists its sale for $8.8 million.
ASIC records show HAPP Singapore Master Holdco Pte Ltd as the sole shareholder in Lahrs Road Pty Ltd.
Hines declined to confirm a sale price for the acquisition.
The property and development manager has acquired 11 logistics sites in Asia Pacific totalling around 633,192sq m across seven cities in Australia, Japan, China, Singapore and South Korea since 2020.
It has invested nearly $11.75 billion ($US8 billion) in the industrial and logistics sector globally across more than 5.5 million sq m, and currently operates in 28 countries.
“Australia is a leader, along with China and India, when it comes to growing demand for cold storage space,” Reilly said.
“In addition to the macroeconomic tailwinds experienced by the sector, new building technologies and standards are reducing the outdated perceived risk of cold storage investment.”
Hines also has assets in the build-to-rent and the office sectors.