- Three adjoining sites in Willawong have been acquired for the new development
- Nine mid-space office/warehouse assets will be built
- Comes as the Brisbane industrial market remains tight
Property fund manager Centennial has acquired three adjoining sites in the inner southern Brisbane suburb of Willawong for a joint venture with real estate financier and investor MaxCap Group.
The three-site deal was brokered by Jack Barrett, State Director at Agency HQ Commercial, who brought the three separate vendors together on Sherbrooke Road, for a purchase price of $14.35 million.
Now, a development application has been lodged to the Brisbane City Council for the new 32,000 sqm estate, which will be known as The Link Industrial Park.
Tendering for the construction of the park has begun, which will consist of nine mid-space office/warehouse tenancies, which will be constructed on a speculative basis, with completion expected by the fourth quarter of 2023.
Upon completion, the project will achieve a 50% total site coverage, with an end value of around $90 million.
Paul Ford, Centennial’s Executive Director and CEO – Industrial & Logistics, said the acquisitions strengthen the fund manager’s growing portfolio in the industrial and logistics mid-space market.
Centennial is now the third largest mid-space asset manager in Brisbane, according to SA1.
“The strategic off-market purchase of these sites in Willawong has been completed in line with our focus on delivering institutional grade ‘mid-space’ warehouse accommodation, with strong connectivity to major distribution networks in land-constrained, inner-ring locations at scale, and will enhance Centennial’s geographic diversification in the Queensland market,” said Mr Ford.
“When complete, the estate at 142-172 Sherbrooke Road will have significant appeal for a broad range of end user customers courtesy of Willawong’s land-constrained, last-mile location, quality of design and finishes and flexibility in the range of warehouse configurations and sizes, from 1,200sqm GLA right up to 20,000 sqm GLA.”
Simon Hulett, MaxCap’s Head of Direct Investment added, “The acquisition was a strong strategic fit for our MaxCap Diversified Opportunity Fund (MDOF), partnering with a high-quality group like Centennial in a tightly held Brisbane last mile industrial location.”
Mr Barrett backed the comments made by Mr Ford, noting the desirability and quality of the central location for mid-space business.
“It’s relatively rare to find a such a significant parcel of land in this location, and with record low vacancy in the core Central South precinct around Acacia Ridge and Coopers Plains, there is currently significant interest in new buildings in Willawong,” explained Mr Barrett.
“Not only does Willawong offer these businesses a location that is close to their current sites, thereby improving efficiency and continuity, it also provides a handy solution in addressing staff retention.”
Centennial’s Development Manager, James Park added that the Willawong locality is land constrained due to fractious ownership, but the amalgamation of the sites provides an opportunity for end users seeking convenience to local and regional markets.
“The area has and continues to benefit from the demand driven by users in the Acacia Ridge and Salisbury precincts requiring higher quality and more flexible accommodation not available in the immediate area.”
