This article is from the Australian Property Journal archive
SENTINEL Property Group has acquired a 14-hectare waterfront industrial investment development site in Brisbane’s TradeCoast precinct for $48.5 million.
The Pinkenba site at 69 Tingira Street was purchased in a leaseback agreement with ASX-listed international industrial chemical company Incitec Pivot Pty Ltd, which will continue to run its fertiliser distribution centre from the site and lease around 11.5 hectares.
Sentinel will utilise the remaining 2.5 hectares on Soutter Street for further development. The site also has an adjoining wet lease of 15,370 sqm with associated wharf infrastructure.
It will be placed in Sentinel’s pooled Industrial Trust portfolio, which also includes assets in Newcastle’s Mayfield, Oxley in Brisbane and Paget in Mackay.
Anthony White and Simon Beirne of Colliers International negotiated the sale.
“This site offers unique ongoing investment potential with core bulk storage and liquid storage assets in low supply throughout Brisbane, particularly when coupled with direct river access,” Sentinel managing director, Warren Ebert said.
He said the property was purchased at a passing net yield of, above that of Recent sales of industrial facilities with yields in the range of 5.5% to 7.5%.
“This is also one of very few sites with wharf access in Brisbane that can accommodate Handymax class vessels of up to 188m long and 34m wide and capable of both liquid and bulk cartage.”
The Australia TradeCoast precinct currently tightly held due to the lack of available land, with demand driven its close proximity to Brisbane Airport, Port of Brisbane and major transport infrastructure.
White saidthe TradeCoast precinct has been a focus for investor interest, underpinned by rapidly increasing leasing volumes.
“We are seeing more sale and leaseback activity, particularly from corporates which we expect will continue.”
In recent weeks Sentinel put two large-format retail centres in Sydney and Melbourne to the market, hoping to fetch more than $50 million combined from the sales.
They include the Dandenong Home Quarter in Melbourne’s south-eastern suburbs, which it picked up for almost $30 million less than 18 months ago; and the Nowra House & Home cent on the New South Wales south coast.
The Queensland-based syndicator has more than 40 assets across a range of property sectors worth well above $1 billion.
Australian Property Journal
