Centennial acquires broadacre industrial asset in Ipswich for $35.5m

Centennial acquires broadacre industrial asset in Ipswich for $35.5 million

• Centennial acquires 67-hectare open air industrial estate off-market for $35.5m

• SEQ currently holds some of the lowest vacancy rates in the country, presenting significant growth opportunities for under-rented sites
  

• Latest acquisition boosts Centennial’s I&L portfolio to 61 assets valued over $1.3bn 

BRISBANE, QLD: National fund manager and developer Centennial has purchased a substantial industrial asset situated at 540-604 Warrego Highway, North Tivoli, 40 km south west of Brisbane.

The 67-hectare land rich, open air industrial estate was acquired for $35.5m and underscores the sustained demand for broadacre industrial sites within the greater Brisbane area.

With South East Queensland currently displaying one of the lowest vacancy rates in the country, this transaction highlights the attractiveness of well-located industrial assets holding significant growth potential.

Currently host to several prominent hardstand users, the site presents ample opportunities for positive rental reversion. Its expansive land area and strategic positioning make it an appealing prospect for businesses seeking to establish a strong industrial presence in the region.

Well positioned adjacent to the Warrego Highway on the outskirts of Ipswich, the site is zoned for Heavy Industry, and holds multiple EPA and Heavy Industry licenses, making it suitable for a wide range of industrial operations.

The off market sale was negotiated by Gary O’Shea of Blue Commercial.

This latest acquisition expands Centennial’s industrial & logistics platform to 61 assets valued in excess of $1.3bn, together with a development pipeline of approximately $300m.

Centennial’s Executive Director, Paul Ford said, “This investment continues to demonstrate our differentiated investment approach, of acquiring high yielding assets at well below land value that offer significant development potential.

“This approach has seen us deploy more than $2.4bn to unlock value across the diverse range of subsectors within the Australian property market to enable us to generate enhanced returns for our investors.

“We have identified ‘Open Air Estates’ as a subsector category showing early positive indicators for growth and for delivering higher investor returns based on market opportunities through fragmented ownership and market mispricing.

“Open air estates are an emerging subsector worldwide yet there is still limited research available into the scale and potential of this subset in Australia,” Mr Ford said. “We view these estates as offering compelling investment propositions with potential for delivering high yielding returns over the short to medium terms.”

Named Warrego Industrial Park, Centennial plans to leverage the property’s distinctive attributes, such as its heavy industry zoning and the scarcity of available hardstand leasing spaces, to offer a compelling value proposition to prospective tenants. This strategic approach aligns with the growing demand for industrial spaces tailored to the evolving needs of businesses in the region.