This article is from the Australian Property Journal archive
NATIONAL fund manager and developer Centennial has snapped up its ninth warehouse facility within Brisbane’s Australia TradeCoast industrial precinct, in an $18.5 million deal with property giant Lendlease.
Centennial, which specialises in acquiring mid-size, last-mile industrial and logistics assets purchased the vacant 3.46-hectare site, five kilometres north east of the CBD at Morningside for its Enhanced Value Partnership (EVP) fund.
The EVP fund’s mandate, now comprising 12 assets with the inclusion of Morningside, typically targets mid-size estates and buildings located in core inner-ring and land constrained regions, and valued between $10 million to $75 million upon stabilisation.
The cleared Morningside site has development approval for a multi-unit estate that will yield around 17,000 sqm of gross lettable area, comprising up to 12 small to mid-space tenancies ranging from 400 sqm to 6,000 sqm across four buildings, with the capacity a single user to take up to 12,000 sqm.
Cushman & Wakefield managed the transaction.
Construction is expected to start imminently with completion earmarked for December 2025.
The Australia TradeCoast submarket has some of the lowest available supply of both development and confirmed redevelopment stock for industrial land in Brisbane. It currently has a 2.4% vacancy rates across, with the mid-sized stock bracket sitting even lower at around 0.6%.
Centennial’s Head of Property Funds David Cupit noted that forecast supply in the precinct was the lowest of all Brisbane industrial precincts, with only circa 80,000 sqm under construction or mooted over the foreseeable future.
The result has been strong rental growth in the precinct, tracking at 11% over the past 12 months, compared to the national average of 6.6%.
“Developable land in Morningside is scarce so we expect there to be continued upward pressure on rents with new, institutional-grade stock being well placed to command premium rents,” Cupitt said.
“The Australia TradeCoast is the second-largest employment zone in Queensland after Brisbane’s CBD and is a key driver of economic growth for the state. Tenants will also benefit from connectivity to nearby freight networks and the major influx of residents moving into the area driven by the redevelopment of the nearby Bulimba Barracks, that will add 850 new homes and associated retail amenity into immediate area,” Cupit said.
