This article is from the Australian Property Journal archive
AUSTRALIA’S industrial market has started 2025 with a bang, with a $600 million pair of eastern seaboard assets put up for sale, with both mega offerings expected to attract huge local and global institutional interest.
ASX-listed explosive and fertilisers group Incitec Pivot Limited (IPL) has lobbed its Gibson Island site at Murarrie in Brisbane to the market, offering nearly 58 hectares of land close to the port and airport, and more than 1.165 kilometres of river frontage with direct wharf access.
IPL announced plans to sell the site in November, having ceased manufacturing at the site in January of 2023. Later this year, it will be relocating its Gibson Island primary distribution centre to a new facility at the Port of Brisbane.
“Gibson Island represents the largest industrial development land holding with deep water wharf access for sale on the eastern seaboard and we expect extreme market interest from both developers and occupiers,” said Colliers’ Simon Beirne, who has the listing alongside colleagues Rob Joyes, Peter Evans and James Wilkie.
“We are expecting extreme interest in this unprecedented development site, especially considering the location, scale and land-constricted market. We have no land left in the TradeCoast, this will be the last major development site for industrial in Brisbane of this scale.”
The agency was tight-lipped about pricing. Market sources speculated to Australian Property Journal that the property could sell for more than $250 million.
The listing came a day after Australian Property Journal reported that diversified property group Sandhurst Retail & Logistics is looking to offload the O’Herns Logistics Park in Melbourne’s northern suburb of Epping.
Industry sources told Australian Property Journal that the 259-hectare site could fetch around $350 million. The site is being sold as a going concern with work already underway on the first stage and major construction due for completion in the middle of this year.
It has permit approval for an industrial and logistics development of more than 700,000 sqm of gross floor area with a net development area of 118.14 hectares.
As well as warehousing, the site offers potential to accommodate hyperscale data centres, for any players looking to capitalise on the growing demand for digital infrastructure.
The site is being marketed by conjunctional agencies LAWD and Colliers.
Despite some 2.3 million sqm of warehouses currently under construction across the country, Australia’s industrial market is set to remain severely undersupplied in the coming years. Brisbane saw 823,000 sqm of take up in 2024, narrowing the gap between it and Sydney and Melbourne.
Both Gibson Island and O’Herns Logistics Park are tipped to attract interest from major global and local institutional players looking to add scale to their portfolio and development pipeline.
Australia continues to be a favoured destination for global investors. Canadian giant Brookfield recently told Australian Property Journal in November that it plans to double the size of its portfolio over 18 months.
Beirne said Gibson Island offers a “rare opportunity to transform land into legacy” with users able to control their own import and export movements, given its 1.165 kilometres of river frontage.
Colliers data shows raw industrial land values in the Australia TradeCoast over the past decade have risen by 136%, including a 57% increase in the last five years. Capital values remain 20% to 25% higher than other Brisbane industrial precincts due to well-developed infrastructure and proximity to the port and airport.
Beirne said this highlighted the area’s high demand and limited supply, which has also seen rental rates in the precinct remain exceeding those in other industrial areas by 5% to 15%, depending on grade.
“As the Olympics draw nearer, the Brisbane industrial revolution has started with the market already seeing a marked rise in demand for space, driven by the infrastructure boom and the growing need for warehousing and distribution services,” he said.
Expressions of interest for Gibson Island close 13th March.