Centennial secures trifecta of Queensland’s last mile and urban infill sites in high growth precincts
- Centennial adds three new industrial and logistics assets in South East Queensland to its Enhanced Value Partnership (EVP) Fund
- Riverview infill site acquired for $38.5m in SEQ’s surging western industrial corridor | 14,680 sqm fully leased warehouse + 6ha for future development
- Alderley in inner-Brisbane ~5km from CBD within urban regeneration precinct secured for $13.7m | 9,089 sqm site | 5,945 sqm GLA
- Murarrie last mile site ~7km from CBD within above trend population growth precinct secured for $11.25m | 11,440 sqm site + 1,940 sqm spec build potential
- Acquisitions increase EVP Fund portfolio to eight assets worth $307m
BRISBANE, QLD: With the ink still drying on its new industrial and logistics acquisitions in Sydney’s Brookvale and Prestons, national fund manager Centennial has headed north to Queensland, outlaying $63.45m for three new industrial and logistics last mile and urban infill sites to add to its growing cache of assets.
The sites are located in Brisbane’s inner-ring suburb of Alderley and Murarrie in the Australia TradeCoast precinct and infill suburb of Riverview, in the surging western industrial corridor.
All three sites possess strong value-add or redevelopment potential and were acquired off-market through Centennial’s new $700m Enhanced Value Partnership (EVP) Fund and have a combined on completion value of $158m.
The largest purchase in the trio is an industrial and logistics facility and development site at Riverview, in South East Queensland’s burgeoning western industrial corridor for $38.5m.
The off-market sale was negotiated directly with a private vendor and includes a 14,680sq m improved warehouse, fully leased to Ausco until February 2025, plus a 6ha hardstand area with development potential to create a circa $130m estate.
“The Fund will reposition the existing building into multiple, flexible tenancies and develop the balance of the 12ha site in line with our strategy of adding value to creating high-quality, flexible, ‘mid space’ I&L estates with institutional appeal,” said Paul Ford, Centennial’s Executive Director and CEO Industrial & Logistics.
The second property is a 9,089sq m site, fully leased by a Boeing Company subsidiary at Alderley, 5km from Brisbane’s CBD that was purchased by the Fund for $13.7m. The off-market deal was negotiated by Anthony White of Colliers on behalf of a private vendor.
The core plus site at 95 Mina Parade contains modern office and warehouse facilities with a GLA of
5,945sq m, together with extensive car parking areas. The site is primed for future redevelopment given its inner-ring location and nearby rail access.
Rounding out the Fund’s latest purchases is an 11,440sq m site at 980 Lytton Road, Murarrie purchased for $11.25m in an off-market sale.
The site is located in the heart of the flourishing Australia TradeCoast industrial precinct around 13km from the CBD, 12km from the port, 10km from the airport and offers 3,535sq m of GLA from a fully leased modern warehouse and office facility. The site also offers potential for a 1,940sq m speculative build with building designs well underway with an on completion value of $24m.
Ben Lyons of CBRE negotiated the sale on behalf of a private vendor.
Mr Ford went on to say the Fund’s latest acquisitions were an ideal fit for the EVP investment vehicle given each ticked all the boxes for their urban, land constrained locations with multiple value-add or redevelopment options.
“Our strategy of deliberately targeting ‘mid-space’ undercapitalised assets through off-market deals and identifying assets that need specialised management will continue to underscore our niche industrial and logistics strategy, while delivering enhanced returns to our investors,” Mr Ford said.
Head of Property Funds, David Cupit said the Fund was confident of adding value to its newest asset purchases, with each meeting the EVP’s mandate of largely targeting land constrained urban infill locations and assets that are generally undercapitalised.
“We will typically target estates and buildings comprising tenancies between 1,000sq m to 10,000sq m within established inner ring, urban and land constrained corridors and valued between $10m to $75m upon stabilisation or redevelopment,” Mr Cupit said.
“This market is often overlooked by institutional investors given the management intensity and scale requirements at the time of purchase…this is a space where Centennial is set up to acquire, execute and manage,” he added.
The focus of the EVP, which is Centennial’s third global partnership, will be to provide additional capital to continue to acquire, reposition and develop niche, mid-space I&L assets within established inner ring and land constrained urban areas.
The three new assets will have an estimated end value once built out of approximately $158m and increase the EVP Fund’s portfolio to eight properties worth in excess of $307m.
As seen in The Courier Mail, Friday, 27 October 2023:
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