Two months after securing a $500m institutional investment mandate to focus on acquiring assets within Australia’s supply-constrained industrial markets, Centuria Capital Group (ASX: CNI) has filed plans for a multi-warehouse complex in Brisbane’s south-west.
The ASX-200 listed real estate funds manager plans to turn a 3.1ha site at 616 Boundary Road, Richlands into a sprawling multi-warehouse complex within a big brand logistics and distribution hub, which capitalises on the strong industrial presence in the area.
Acquired off-market by the fund manager in 2018 for $15.9m, the existing facility – comprising a 13,763sq m warehouse – will be replaced with three office-warehouse buildings with a total of 16,718sq m, hence maximising the industrial capacity of the site.
It’s understood Centuria’s three proposed warehouse buildings – designed by Cottee Parker Architects – will have gross floor areas of 6713sq m, 6097sq m and 3908sq m respectively.
With a 14m-plus height, warehouses have also been designed to house the largest vehicles capable of servicing the site, 26m B-double semi-trailers and 19m articulated vehicles.
Included within the documents filed are plans for the onsite parking for up to 116 vehicles with Boundary and Archerfield roads making for easy access to Ipswich Motorway and Richlands train station.
Underscoring demand from logistics providers in Brisbane and South East Queensland – for space to meet their customers’ demand – is the sizable increase in net interstate migration, and supply chain repositioning due to the ongoing e-commerce boom.
Revitalise an underutilised site
According to a planning assessment report, the [Boundary Road] proposal has been carefully considered in relation to the surrounding established developments, which within the prime Richlands East industrial precinct include the likes of Coca-Cola and Target.
“The proposed development is considerate to the existing site conditions and surrounding environment and will revitalise an underutilised site to deliver valuable industrial opportunities consistent with the local and state planning framework,” the planning assessment report states.
“The proposed warehouses are of a high quality and construction standard and will positively contribute to the high standard character of surrounding industrial development.”
Expect more deals from Centuria
Centuria’s development of the 3.1ha site at 616 Boundary Road, Richlands adds to the fund manager’s $6bn industrial platform, which consists of 160 properties across Australia and NZ – focussing on infill logistics markets close to the high-density city fringe areas.
Within a challenging FY24 backdrop, industrial and alternative sectors are expected to remain pivotal revenue drivers for Centuria going forward.
Centuria recorded an operating profit after tax for the 2022-23 fiscal year of $115.6m.
Image: 680 Boundary Road, Richlands: Centuria.
