- 69 Tingira Street is a 14-hectare waterfront site
- Sims Ltd is a global recycler
- In other news, Sydney-based CGD Capital has made their first venture into the Brisbane industrial property scene
A global recycler has snapped up a 14-hectare waterfront industrial facility in Pinkenba for $88 million.
The 69 Tingira Street site, on the Brisbane River, was purchased from the Sentinel Property Group by Sims Ltd.
Along with being recognised globally for its metal recycling, the company is also an emerging leader in municipal recycling and renewable energy.
The site has a combined area of 26,676 sqm of buildings, including high-clearance warehouses and administration facilities.
Notably, it includes a 1.5-hectare seabed lease facilitating a wharf suitable for Handymax vessels, allowing for export operations directly from the site.
This is one of the few deep-water berths in Brisbane.
Toby Hundertmark from Savills, who managed the sale, said the site appealed to the metal and cloud infrastructure recycler given its land size, location and access to the berth.
“Tingira Street offered an asset that was instrumental to Sims’ business strategy,” he said.
“Our client, Sentinel Property Group, seized an excellent opportunity to sell the property to an owner occupier with strong sustainability credentials and a long-term vision, who will put the property to its highest and best use.”
More broadly, the Pinkeba location is highly sought after by tenants and investors due to its prominence with the Australia Trade Coast Precinct, which includes the Port of Brisbane and Brisbane Airport, as it delivers air, land and sea logistics capabilities.
CGD acquires Brisbane industrial site
In other industrial acquisition news, Sydney-based investment group CGD Capital has announced its first purchase of an industrial facility in Brisbane from an undisclosed vendor.
The 2,983 sqm site at 21 Fulcrum Street, Richlands, was acquired for $3.65 million and features a freestanding 2,133 sqm warehouse, currently leased by trailer manufacturer BruderX through to July 2025.
The sale represents a yield of 4.38%.
Located in a prominent outer south-western industrial hub, the property is near the Ipswich Motorway and Centenary Highway junction.
“The investor saw immense value in the property due to its current lease term, and Brisbane’s rising industrial rents,” said Jack Sherrie of CBRE, who brokered the transaction.
“During CGD Capital’s search for a site, they found that securing an A-grade facility in prominent Brisbane industrial suburbs with a near-6% return is next-to impossible.
“They changed their strategy and were open to different avenues to acquire their requirement, even if that meant taking on some leasing risk.”
“Investors are looking at under-rented assets, with the foresight to gain a significant rental increase in the long run,” added fellow colleague Sean Skeffington.
