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Centennial and MaxCap kick off construction on their $100m last mile industrial park in Brisbane’s emerging Willawong logistics hub
- McNab starts construction on Centennial/MaxCap’s last mile industrial park at Willawong
- Three adjoining sites (142 & 162-172 Sherbrooke Rd Willawong) acquired in January 2022 for $14.35m
- The Link Industrial Park will comprise ~32,000 sqm of flexible GLA featuring 9 office/warehouses across three buildings
- Extensive revegetation and maintenance works spanning ~17,000 sqm along Oxley Creek catchment
- The Link Industrial Park completion value ~$100m
- According to SA1 Centennial is now Brisbane’s fourth largest mid-space industrial holder
BRISBANE, QLD: National property fund manager Centennial and its joint venture development partner MaxCap Group have commenced construction on their Link Industrial Park project at Willawong in Brisbane’s south, with one of Queensland’s leading industrial builders McNab starting work this week on The Link Industrial Park.
In a strong show of confidence for the ongoing strength, highly land constrained inner ring markets and future growth of south east Queensland’s booming industrial and logistics (I&L) sector, Centennial has drawn from its expertise in the mid-space, last mile industrial space to embark on this speculative, multi-unit I&L build that will yield nine premium office/warehouses spread across three buildings, and deliver around 32,000 sqm of gross lettable area.
Having acquired and developed an impressive portfolio of 63 industrial assets worth in excess of $1.2 billion in just five years, Centennial’s Executive Director and CEO – Industrial & Logistics, Paul Ford, said The Link Industrial Park presented an outstanding opportunity to partner with MaxCap to create an institutional grade, mid-space logistics estate in a highly land constrained precinct, from the ground up.
The majority of larger institutions generally only target tenants requiring 10,000 sqm and upwards, thereby starving smaller businesses from accessing quality A-grade industrial space for their employees.
In a competitive jobs market where it’s hard to attract and retain employees, we expect The Link Industrial Park will be a major drawcard for tenants looking to provide high-quality work surroundings, together with a wide range of sustainability initiatives which support a five star facility with carbon reducing initiatives that are more easily incorporated into new build project,” Mr Ford added.
As part of Brisbane City Council’s development approval, Centennial and MaxCap will also undertake significant revegetation of high value ecological space along Oxley Creek, which comprises almost 17,000 sqm that will be dedicated to Council on completion.
Simon Hulett, MaxCap’s Head of Direct Investment said the company was delighted to be partnering with Centennial and commencing construction.
“The investment complements the other assets in our MaxCap Diversified Opportunity Fund through adding continued geographical and sector diversity, as well as bringing another highly sophisticated joint venture partner into the portfolio,” Mr Hulett added. “Commencing construction now highlights our confidence in the product and provides prospective tenants with certainty of delivery in a constrained market.”
“Centennial is considered to be the inner-ring and last mile logistics specialist and has built up an impressive portfolio to now be Brisbane’s fourth largest manager of mid-space assets.
“Willawong’s central location and proximity to major transport and infrastructure networks also underscored our decision to partner with Centennial. With low vacancy and limited supply of this scale, the Link presents a compelling opportunity to deliver a differentiated product within an infill area experiencing sustained occupier demand,” he said.
Jack Barratt and Paul Flego of Agency HQ and Jack Hardy and Peter Turnbull of CBRE have been appointed leasing agents of The Link Industrial Park, with both agencies reporting positive feedback for the site’s location and strong early interest from a broad mix of occupiers before construction had even commenced.
It’s relatively rare to find 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, said Agency HQ’s Jack Barratt.
“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.”
When complete in Q2 2024, The Link Industrial Park will achieve a total site coverage of about 50 per cent and will deliver Centennial and MaxCap a completion value of approximately $100m.
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