$34.7m investment sale shows confidence in Australia TradeCoast

Boutique institutional fund manager Arcadia Funds Management Limited (Arcadia) have sold a multi tenanted industrial estate in Pinkenba for $34.7 million in what looks to be the largest industrial sale in Brisbane in the first quarter this year. City Freeholds purchased the property, beating 17 other groups who placed written expressions of interest for the asset.

Situated on a 45,000sqm site at 731 Curtin Avenue East in Pinkenba, the property comprises of a bulk storage warehousing facility including three high quality corporate office and warehousing units totalling 15,000sqm of gross floor area. The property was sold fully tenanted and returning approximately $2,085,000 per annum.

Deal analysis indicates the initial transaction yield at 5.8% with strong scope for future income growth.

Simon Beirne and Anthony White of Colliers International marketed the property as exclusive selling agents in a 5-week on-market Expression of Interest campaign which generated over 150 enquiries.

“The buyer panel was made up of REITS, wholesale capital and high net worth privates with the latter being more aggressive and offering cleaner terms,” Simon Beirne said. “We believe this trend in the market is set to continue while institutional groups reassess their position.”

“The TradeCoast has continually outperformed other major markets with strong rentals and lower historical vacancy levels,” said Anthony White.  “We expected interest from a wide range of groups and were pleased with the engagement and strong competition that resulted in acceptable deals being received from several groups at the close of the second round.

“This deal underpins the confidence in the industrial and logistics sector, particularly with tenant profiles who are somewhat sheltered from the economy wide COVID-19 impact.

“Arcadia have done a great job in delivering a staggered leasing profile, with a 6-year weighted average lease expiry and no two leases coming up for renewal in the same year,” said Anthony.

The leasing profile for this asset included Cement Australia, BASF Australia and John S Hayes, a private company trading in wholesale cleaning and hygiene products.

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Simon Beirne

State Chief Executive | Queensland

Brisbane CBD

As the State Chief Executive of Queensland, Simon's responsibilities include overall supervision of the Queensland business comprising of 6 offices and over 200 staff. 

At Colliers, we work hard to connect internally to share knowledge about our clients and deliver better outcomes for them. This team ethos is a strong part of our culture and keeps our people highly engaged and it has kept Simon wanting to be part of this great business for the last 20 years.

Simon has over 25 years’ experience in the real estate industry and the agency having previously worked for Primac Elders as an auctioneer prior to joining Colliers International in 1998.

Simon's background is in industrial property where he has been responsible for some of the largest transactions in Queensland over the past 20 years.

In 2015 Simon was involved in the sale of the GIC/Frasers portfolio totalling $1.073 billion. This is the largest and highest quality industrial sale on record in the Australian market.

And in 2017 Simon had the pleasure of marketing the Coca-Cola Amatil Campus in Richlands which was sold to Charter Hall for $157m, making it the largest single industrial asset sale in Queensland's history.

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Anthony White

National Director

Brisbane CBD

As a Director within our Brisbane business, I specialise in the sale and lease of major industrial facilities throughout the Australia TradeCoast and Northside precincts of Brisbane. Over the past two years I have been fortunate enough to help my clients transact over $300 million of quality industrial property and have negotiated leases worth in excess of $10 million per annum on their behalf.

I am focused on major industrial transactions and I seek to use this specialisation to add value for my clients by providing a targeted approach to their complex property requirements.
 

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