Centennial secures long-term pre-commitment for southern Brisbane ‘last mile’ estate.
- Burndy Cable Support Systems takes up a 10-year lease at Centennial’s Acacia Industrial Park
- The lease covers 9,000sqm of office and warehouse space, equivalent to 30% of the estate, bringing three Brisbane sites under the one roof
- Heads of Agreement also signed with a national retailer to lease a further 2,795sqm
- Following an innovative refurbishment, the end value of the industrial & logistics park will be $45M
Centennial Property Group (Centennial), has secured a pre-commitment with leading national commercial construction applications supplier, Burndy Cable Support Systems, for 9,000sqm of office and warehouse space at the company’s Acacia Industrial Park, in Brisbane’s south.
Negotiated by Jack Hardy, Associate Director, CBRE Industrial & Logistics, the 10-year lease gives Burndy access to 30% of the estate, and follows a separate heads of agreement with a national retailer for a further 2,795sqm of space at the facility.
Located at 131 Beenleigh Road, Acacia Ridge, the estate boasts a total of 26,985sqm Gross Floor Area (GFA) and is set to undergo a highly innovative $12.6M refurbishment program by Centennial, with the scope of works including raising the seven-metre warehouse roof height to provide over 11 metres of internal clearance.
In addition, Centennial’s refurbishment will upgrade the existing warehouses, add 600sqm of new office accommodation, reconfigure loading docks, create flexible tenancies, install a new ESFR sprinkler system, upgrade the external façade, and undertake general landscaping, fencing and painting.
When complete, the project’s end value is estimated at $45M.
According to Paul Ford, Centennial’s Executive Director and CEO – Industrial & Logistics, the new leases are pivotal in the company continuing to deliver its “land rich, mid-space” strategy.
“The Burndy CSS commitment has proven the current market’s strong appetite for prime-grade, flexible, infill/last mile industrial and logistics facilities, and Centennial’s ability to innovate.”
According to Mr Hardy, the deal facilitated a long-awaited site consolidation for Burndy Cable Support Systems, which originally went to market in late 2020 to amalgamate its three existing Acacia Ridge warehouses to support growth related to an increase in Australian infrastructure projects.
“The sticking point at the time was that they wanted to stay in Acacia Ridge given the area’s proximity to both its existing customer and employment base and surrounding road infrastructure, but no suitable options were available,” he said.
“That all changed in 2021 when Centennial acquired Acacia Industrial Park – seizing an opportunity to repurpose an existing 4.7ha estate at below land value, in one of Brisbane’s oldest but most sought-after industrial markets.
“While land shortages have led to a lack of new industrial developments in Acacia Ridge, Centennial has adopted a highly innovative approach and has been able to repurpose rather than knockdown, as well as lifting the roof on the existing warehouses by five metres from 7.2 to 11.2 metres in order to suit occupier requirements – something that hasn’t been done before in the Queensland market.”
“CBRE introduced the Burndy CSS commitment, which is the first since Centennial acquired the property and relates to the largest tenancy in the development, significantly de-risking the project.”
While the Burndy Cable Support Systems rental has not been disclosed, market rents in the area range between $100/sqm and $120/sqm.
The freestanding facility includes a 200sqm office and a large, dedicated hardstand and yard for external storage purposes.
As an added benefit, the estate is close to Beaudesert Road and the Ipswich and Logan Motorways.
Approximately 14,000sqm of space is still available for lease, with an estimated mid-year practical completion date.
The 4.66ha estate is situated in Brisbane’s inner ring industrial precinct, 30km south-west of the Port of Brisbane, 27km south-west of Brisbane Airport,13km south of the Brisbane CBD and 1km north-east of the Acacia Ridge (Linfox) freight terminal.
About Centennial Industrial & Logistics
Centennial has built a specialist industrial and logistics team focusing on the mid-market space, with a curated portfolio of 57 assets and in excess of $850M under management, as well as a $250M development pipeline.
With a team of 30 based in Sydney, Melbourne, Brisbane and Adelaide, Centennial focuses on several niche sectors of the Australian property market.
