This article is from the Australian Property Journal archive
THE ESR Australia Development Partnership has swooped on an 18-hectare infill site in Brisbane’s prime industrial precinct of Acacia Ridge.
The $1 billion partnership has acquired the site from Blackstone for $90 million. EADP plans to develop the 1502 Beaudesert Rd Acacia Ridge site in stages into a premium logistics estate with the potential for a total GFA of approximately 100,000 sqm. A 2.5 ha pad is available for immediate development of circa 14,000 sqm with a development approval in place. The balance of the site will be redeveloped over the next few years. Existing improvements are predominately older style warehousing built in the 1960s.
The site is close to the Acacia Ridge Intermodal Terminal and Archerfield Airport, and 13 km from Brisbane CBD.
CEO Phil Pearce said the property is located in an established industrial precinct experiencing low supply and high customer demand.
“The significant Acacia Ridge holding includes a mixture of income-producing warehouses and vacant land in an established industrial area with few available sites of a similar scale within the precinct. This presents an ideal opportunity to secure prospective users seeking larger, contemporary facilities in a premium location.
“We targeted this location due to strong demand for premium logistics assets and the potential for redevelopment in this land-constrained market. An infill site of this scale with holding income in the blue-chip Acacia Ridge precinct is rare, so we’re well positioned to capitalise on the demand by creating a high-quality logistics estate in one of Brisbane’s best industrial locations,” he added.
“With an immediate development opportunity ready-to-go on the site’s southern boundary, this site allows us to leverage our core capabilities of development, leasing and asset management,”
Pearce said the acquisition is inline EADP’s strategy to rapidly acquire key sites on the eastern seaboard.
“This acquisition comes after the recent closing of EADP and the acquisition of 79 ha in south east Melbourne in July. We’re pleased to continue executing EADP’s investment strategy by providing exposure to the Queensland market,” he concluded.
This transaction reaffirms the appetite for industrial properties during the coronavirus. Recently Cushman & Wakefield research shows industrial transactions has surpassed offices for the first time in almost 10 years.
Recently CSR sold its Horsley Park facility for $84.3 million; Hastings Deering sold an industrial development land in Brisbane for $41.5 million, and Qube Holdings is in talk to sell its Moorebank Logistics Park for $2 billion.
Other recent deals include Dexus’ sale of six assets into its joint venture vehicle with GIC, the Dexus Australia Logistics Trust, for $270 million, and Charter Hall’s acquisition of the OIA Glass portfolio for $214.6 million and the automotive logistics park in Minto from Qube for $207 million.
Charter Hall also acquired four ALDI logistics properties in partnership with Allianz for $648 million, as well as the Winc national distribution centre in Erskine Park for $115 million.
In August active player Logos paid $50 million for the former Woolworths distribution centre in Melbourne; acquired an Epping logistics asset with an end value of $70 million, and bought distribution centres in Sydney and Logan City for $172 million from healthcare company Sigma, with the backing of the New South Wales government’s financial management and investment arm, TCorp.
In the same month Centuria Industrial REIT snapped up Telstra’s data centre complex in south east Melbourne for $416.7 million.
But it is not only local institutional players actively seeking industrial assets, global real estate investment manager DWS picked up a 50% stake in a Coorparoo chilled warehouse facility for a cool $152.5 million last month, while Singapore’s Mapletree Logistics Trust paid $21.25 million for a newly built warehouse leased to Decina Bathroomware in Inala.
