Global recycler Sims has bought a 14-hectare industrial facility in Pinkenba, Brisbane from Sentinel Property Group for $88 million.
The waterfront property at 69 Tingira Street was situated on the Brisbane River in Pinkenba – about 10 kilometres from the Brisbane CBD.
The asset comprised a liquid and bulk storage facility with a combined building area of 26,676 sqm, including high-clearance warehouses and administration facilities.
The property also included a 1.5-hectare seabed lease facilitating a wharf suitable for Handymax vessels that allowed the purchaser to continue its exporting operations directly from the property.
According to Savills, the Pinkenba location was highly sought after because of its prominence within the premier Australia Trade Coast Precinct, which incorporated the Port of Brisbane and Brisbane Airport and delivered air, land, and sea logistics capabilities.
“Tingira Street offered an asset that was instrumental to Sims’ business strategy,” Savills’ Toby Hundertmark said.
“Our client, Sentinel Property Group, seized an excellent opportunity to sell the property to an owner occupier with strong sustainability credentials and a long-term vision, who will put the property to its highest and best use.”
Recent Brisbane industrial deals include Hines’ purchase of an industrial property in Pinkenba, as part of a larger $211.5 million transaction.
In March, Charter Hall and its wholesale industrial partnership with PGGM bought a brownfield industrial site in Bowen Hills for $60 million, reflecting a 4.4% equated yield.
Clarence Property acquired an industrial land estate in Heathwood from Multeem for $30 million in February, while Harmony Property Investments purchased a portfolio of three industrial properties in Banyo, Brendale and Narangba from BFJ Property for about $24 million.
At the national level, investment into industrial and logistics property continued at full steam during the first quarter of 2022, with deal volume totalling $4.1 billion and eclipsing the retail sector that reported $2.7 billion in first quarter deals and the office sector with $3.4 billion.
In Q1 2022, rental growth continued to rise across the industrial sector, with the national vacancy rate remaining at sub-2%, according to CBRE.
Gross floorspace take-up reached 181,447 sqm in Q1 – only around half the take-up recorded during the same period last year.
Lower lease transactions were due to the record low vacancy rate, CBRE said, with Melbourne activity being dominated by occupier activity.
The development supply pipeline forecast for 2022 was relatively strong, with 2.7 million sqm of new floorspace expected to be added to the market. Only 8% of the 2022 total was delivered in Q1.
