Centennial and MaxCap Group have purchased three adjoining sites in Brisbane’s inner southern suburb of Willawong for $14.35 million, with plans to build a $90 million industrial park.
The joint venture purchased the 162-172 Sherbrooke Road and 142 Sherbrooke Road sites from three separate vendors.
The buyers plan to create an estate with about 32,000 sqm of gross lettable area worth an estimated $90 million on completion.
A development application has been lodged and Centennial is about to start tendering for the construction of the estate, which will comprise up to nine office/warehouse buildings.
The development is expected to be completed in Q4 2023.
Centennial’s Executive Director and CEO – Industrial & Logistics, Paul Ford said the acquisitions strengthened the company’s growing and niche portfolio within the industrial and logistics ‘mid-space’ market.
“The strategic off-market purchase of these sites in Willawong has been completed in line with our focus on delivering institutional grade ‘mid-space’ warehouse accommodation, with strong connectivity to major distribution networks in land-constrained, inner-ring locations at scale, and will enhance Centennial’s geographic diversification in the Queensland market,” Ford said.
“When complete, the estate at 142-172 Sherbrooke Road will have significant appeal for a broad range of end user customers courtesy of Willawong’s land-constrained, last-mile location, quality of design and finishes and flexibility in the range of warehouse configurations and sizes, from 1,200 sqm GLA right up to 20,000 sqm GLA.”
Simon Hulett, MaxCap’s Head of Direct Investment said the acquisition was a strong strategic fit for the MaxCap Diversified Opportunity Fund (MDOF).
Jack Barrett, State Director at Agency HQ Commercial, brokered the deal.
“It’s relatively rare to find a such a significant parcel of land in this location, and with record low vacancy in the core Central South precinct around Acacia Ridge and Coopers Plains, there is currently significant interest in new buildings in Willawong,” Barrett said.
“Not only does Willawong offer these businesses a location that is close to their current sites, thereby improving efficiency and continuity, it also provides a handy solution in addressing staff retention.”
Centennial’s Development Manager, James Park said the area had and continued to benefit from the demand driven by users in the Acacia Ridge and Salisbury precincts, which required higher quality and more flexible accommodation not available in the immediate area.
The new estate is located midway between the Logan Motorway to the south and the Acacia Ridge Rail Marshalling Yards to the north.
