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Chinese e-commerce giant JD.com has entered advanced negotiations to buy a Brisbane logistics hub for more than $240 million.
The deal for the Wacol Logistics Hub marks a strategic expansion for the Beijing-based company’s property arm as it builds its warehouse portfolio beyond Asia.
The 18.2ha industrial estate, comprising six warehouses 18km south-west of the Brisbane CBD, is JD Property’s first Australian acquisition.
JD Property head of Asia-Pacific Richard Law is leading the company’s regional expansion, which has included acquiring two warehouses in Japan in a deal valued at $371 million.
“Australia’s importance doesn’t change, and the business is going well,” a JD.com spokesperson said in relation to the company’s interest in the Australian market, despite scaling back its Australian e-commerce operations in 2019.
The Wacol Logistics Hub, at 3746 Ipswich Road, has connections to the Ipswich and Logan motorways and was initially acquired by Logos from Fletcher Building in 2021.
The site served as the cornerstone asset for a development venture with US investment firm KKR and Abu Dhabi’s Mubadala Investment Company.
The property became available when the co-investors elected to redirect capital elsewhere.
News of the transaction comes as other major players strengthen their positions in Brisbane’s industrial market.
Charter Hall Group has announced plans for a $350-million industrial precinct at Darra after acquiring a 17.5ha site for $80.55 million.
The ASX-listed developer plans a 100,000sq m estate next to its completed $250-million Connect West Industrial Estate.
Charter Hall chief executive David Harrison said the acquisition “underscores our continued conviction for greenfield development sites appealing to customers from 10,000sq m up to 100,000sq m of lettable area”.
The deal is part of a surge in Australia’s industrial property transactions, according to data from Cushman & Wakefield.
The property consultancy reports first-quarter industrial volume totalling $1.9 billion nationwide, more than tripling the $620 million recorded during the same period last year.
The Brisbane area has experienced $313 million in industrial transactions this quarter, with the Wacol acquisition set to boost year-to-date volume to $553 million.
Cushman & Wakefield head of logistics and industrial research for Australia Luke Crawford said Australian logistics opportunities offered cap rates at a blended average across the country of about 5.85 per cent, which “certainly paints a pretty good picture, particularly when combined with continued strong sector fundamentals”.
The Wacol property currently generates a net annual income of $12.4 million. Its established tenants include Myer, Winning Services and Fantastic Furniture.
The hub has been described as “substantially underlet, providing potential further outperformance going forward”, suggesting scope for rental increases up to 20 per cent.
This acquisition follows JD Property’s recent purchases across Asia-Pacific, including the LiFung Centre in Hong Kong from M&G Real Estate for $368 million and five logistics assets in Singapore from ESR-Logos REIT for $405 million in partnership with Hillhouse-backed EZA Hill.
Cushman & Wakefield projects Australian industrial investment to rise by 38 per cent to reach $10 billion in 2025.
Cushman & Wakefield national director, capital markets, Gary Hyland said “Brisbane’s industrial occupier market remains robust, supported by ongoing structural trends and an undersupply of warehouse space”.
In prime infill locations, rental growth has approached 20 per cent, highlighting the intense demand for well-positioned industrial assets as vacancy rates hover around 2.5 per cent.
Planned transport infrastructure, including the Inland Rail project connecting the Port of Brisbane to Melbourne, is expected to further enhance the appeal of industrial properties across South-East Queensland as foreign capital continues to flow into Australian logistics infrastructure.
