TradeCoast deal a $34.7m confidence boost for Qld’s industrial market

A Sydney-based property group has fended off strong offers from 17 other interested parties for a multi-tenant industrial estate at Pinkenba in Brisbane’s TradeCoast precinct.

Aerial view of the large industrial estate at 731 Curtin Ave East, Pinkenba.

A MULTI-tenant estate in Brisbane's Australia TradeCoast precinct has changed hands in what is believed to be the city’s largest industrial sale in the first quarter this year.

Boutique institutional fund manager Arcadia Funds Management Limited has sold the Pinkenba asset for $34.7 million to City Freeholds.

The Sydney-based property group fended off strong competition from 17 other interested parties who submitted written expressions of interest for the property, which spans a 45,000sq m site at 731 Curtin Ave East.

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Selling agents Simon Beirne and Anthony White negotiated the deal after fielding more than 150 inquiries during the five-week on-market campaign.

The property, which comprises a bulk storage facility with three high quality office/warehouse units totalling 15,000sq m of gross floor area, was sold fully tenanted with a rental return of about $2,085,000 a year.

Mr Beirne said the transaction reflected an initial yield of 5.8 per cent with strong scope for future income growth.

Colliers International's Queensland chief executive Simon Beirne and director Anthony White.

“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,” he said.

“We believe this trend in the market is set to continue while institutional groups reassess their position.”

Mr White said the deal underpinned the confidence in the industrial and logistics sector, particularly with tenant profiles that are somewhat sheltered from the economy wide COVID-19 impact.

He said it also reinforced the strength of the TradeCoast precinct, which has continually outperformed other major markets with strong rentals and lower historical vacancy levels.

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

The asset’s tenants include Cement Australia, BASF Australia and John S Hayes, a private company trading in wholesale cleaning and hygiene products.