LOGOS sells off seven parcels at Gold Coast Logistics Hub for $500sq m — 20 per cent up on two years ago
The owner of a massive new logistics hub on the Gold Coast is reporting land sale prices far higher than achieved two years ago.
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LAND prices on the central Gold Coast continue to rise with LOGOS Logistics Hub reporting square metre rates 20 per cent higher than two years ago.
The estate is being built on a 22.16ha site off Captain Cook Drive in Arundel.
LOGOS purchased the property, which used to be home to the Colgate-Palmolive factory, for $23.2 million in 2017.
It has sold seven lots, ranging in size from 2869sq m to 4912sq m, for an average price of $500sq m. That is close to 20 per cent higher than land sale prices of $420sq m at nearby Technology Park two years ago.
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Buyers have included builders, developers and owner-occupiers, all hailing from the Gold Coast, and looking to take advantage of a shortage of industrial land.
Global logistics company Toll has built a 10,250sq m regional logistics facility on the hub land — taking a 12-year lease and consolidating its Gold Coast operations.
Developers Gavin and Nigel Nixon are planning a 14-unit project on a 4912sq m block they purchased for $2.45 million earlier this year.
LOGOS’ Head of Australia and New Zealand Darren Searle said the hub is the last large infill site available on the Gold Coast.
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“This property enables us to meet growing demand from our customers and Gold Coast occupiers looking for quality facilities in the region,” he said.
The land sites have been marketed by CBRE’s David Corke and Savills’ Callum Stenson.
Mr Corke the prices have set a new benchmark for the central Gold Coast.
“We have not seen prices like this since pre-GFC,” he said.
He said developers are increasingly willing to undertake design-and-construct projects.
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“Land rates are good, rents are up and they can still achieve good yields on sale,” he said.
“Purpose-built facilities deliver much greater building efficiencies, compared to existing older buildings, in terms of customised layout and clearance.”
Mr Stenson said the limited supply of existing a-grade industrial stock is fuelling
demand for new facilities.
LOGOS says the $160 million hub that will accommodate up to 72,000sq m of gross lettable area upon completion.
It is hanging on to 9.5ha of land, which LOGOS plans to lease to tenants for design-and-construct projects.
The four lots available range from 2ha to 2.6ha and are targeted at large companies looking to consolidate their operations into a central location. One 2.8ha “non core” site has also been divested.
LOGOS has also completed infrastructure works across the hub, building a new
intersection from Captain Cook Drive to the property.
Cushman and Wakefield’s Josh Wright said the market for industrial land on the central Gold Coast is continuing to rise.
He said he sold a 4800sq parcel on Technology Drive two years ago for $420sq m.
Mr Wright said that same property had sold again for $550sq m with settlement due in September.
“I don’t think the prices for the LOGOS land is above current market rates,” he said.
“Six months ago it was above the average rate but the market has continued to rise.”
He said that was true for the southern land market as well with owners asking for $600 to $650sq m.
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