Property fund manager Centennial has secured a 13,270 sqm industrial site in Brisbane’s sought-after Australia TradeCoast industrial precinct in Pinkenba for $15.6 million.
Located at 680 MacArthur Avenue, the site bookends two adjoining sites owned by Centennial to form the newly created MacArthur Industrial Estate.
The estate will span a site area of 34,230 sqm and valued at circa $50 million.
The sale comprised a flexible value-add industrial and logistics facility with 3,810 sqm gross floor area (GFA) and adjoining 5,380 sqm hardstand area.
Centennial’s Executive Director and CEO, Industrial & Logistics, Paul Ford said the company’s latest acquisition bolsters its growing portfolio of niche ‘mid-space’ holdings within Brisbane’s tightly held TradeCoast precinct.
“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’ Anthony White and Jared Conway brokered the sale on behalf of a private vendor.
Colliers’ National Director of Industrial, Anthony White said the site drew significant interest from investors and owner-occupiers, with Centennial astutely identifying an opportunity to purchase an asset primed to take advantage of the growth in industrial rents as demand continues to outpace new supply.
“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 on-stream in the Australia TradeCoast precinct,” White said.
The Colliers team was also responsible for leasing the site to national vehicle repair group, Action Smart Group, which generated a near record TradeCoast rental rate of $205 per sqm over a five-year lease.
Centennial’s latest acquisition expands its logistics and investment portfolio to 63 assets throughout Australia valued at approximately $1 billion, plus an additional national development pipeline in excess of $350 million.
Centennial has built a specialist industrial and logistics team focusing on the mid-market space, with a curated portfolio of 63 assets and in excess of $1 billion under management, as well as a new development pipeline in excess of $350 million.