This article is from the Australian Property Journal archive
ASX-listed Centuria Capital sold a 3.13-hectare Brisbane industrial site for $26.75 million, opting to divest the Richlands property following a period of strong land value growth in the region, a year after it had lodged plans for a logistics and distribution estate development.
Centuria had acquired the property off-market in 2018 for $15.9 million in a three-year leaseback deal with logistics group Border Express. The property, which has 13,763 sqm warehouse and office, is now leased to Grays E Commerce Group Ltd and has been used as a manufacturing and transport facility.
A year ago, Centuria lodged plans designed by Cottee Parker Architects to replace the existing facility with three warehouse an office buildings with a height of more than 14 metres, and respective gross floor areas of 6,713 sqm, 6,097 sqm and 3,908 sqm, totalling 16,718 sqm. There would also be 116 car parks.
CBRE’s Matthew Frazer-Ryan and Jack Hardy managed the recent sale, with a Queensland-based private investor the purchaser.
“The site drew interest from multiple parties based on the landholding’s strategic, infill location within the Richlands industrial market,” Frazer-Ryan said.
“Due to the low vacancy levels and significant take-up recorded within Brisbane’s western corridor over the past few years, significant growth in rents has been observed in this precinct.”
According to CBRE Over the past 12 months, the western corridor has recorded the strongest land value growth for both small and large lots, increasing by an average of 50%.
The western corridor precinct accounted for approximately 25% of Brisbane’s leasing activity across 2023 and 2024 year-to-date.
Australia’s logistics and industrial sector recorded $3.5 billion in transactions in the September quarter, up from $2.6 billion in the June period, according to Cushman & Wakefield, as low vacancy and sustained rental growth continue to drive investment activity.
Centuria last month enhanced its balance sheet and bolstered its liquidity with a new $50 million debt facility.
It is forecasting earnings and distributions growth in the coming year as it continues to embrace tomato glasshouses, data centres and private credit, while it is eyeing off a suite of opportunities in New Zealand.
