Brisbane industrial infill site snapped up off market
A large industrial infill development site in Brisbane’s south has changed hands in an off-market transaction.
The 91,776 sqm corner allotment at 425-479 Freeman Road in the heart of Richlands was bought by the Dexus Australian Logistics Trust (DALT) for $26.5 million.
Greg Russell of Knight Frank negotiated the sale on behalf of the property owner, fund manager Heathley Asset Management Limited.
He said major institutional owners were scouring the market for land opportunities, with the availability of sites currently scarce.
“This particular site was attractive to developers due to the scarcity of such sites, as well as its location close to the Centenary Highway and Ipswich Motorway, which will be attractive to future and potential tenants."
“It also has significant road frontage in excess of 640 metres, providing future tenants with fantastic exposure.”
Mr Russell saidvthere is a shortage of A-grade opportunities within the precinct, with the adjacent Drive Industrial Estate, owned by Dexus Wholesale Property Fund, completed in 2015 and fully leased.
The Richlands property is comprised of five adjoining, separately titled lots, with areas ranging from around one hectare to just over four hectares.
DALT is a circa $2 billion unlisted trust that invests in Australian logistics properties. The trust plans to construct a 55,000 sqm facility on the site, with a flexible design to suit varying tenancy sizes.
Mr Russell said the sale of the Richlands property was a strong reflection of the appetite from major institutions for well-located infill sites to accommodate their development pipelines and ultimately lead to the growth of their industrial sector holdings.
“There is a dearth of core investment opportunities, hence development opportunities are filling the void and creating a new level of investment-grade product, including 14.7 metre internal clearances, solar power, LED lighting and super awnings inter alia,” he concluded.
