Gateway Capital grabs Trade Coast gem in $36m Brisbane play

Growing funds manager Gateway Capital has swooped on an industrial property in Hemmant in Brisbane’s tightly held Trade Coast region.

Gateway Capital managing director (property) Peter McDonald, left, and Gateway Capital CEO Stuart Dawes.

Growing funds manager Gateway Capital has swooped on an industrial property in Hemmant in Brisbane’s tightly held Trade Coast region, picking it up from Centennial Industrial & Logistics for $36.1m.

The purchase of the large-scale income-producing asset builds on the firm’s activity since it was set up by former Propertylink and ESR executives Stuart Dawes and Peter McDonald.

They have also been joined by former ESR Australia head of capital transactions Casey Greenberg, who will become an executive director. He brings more than two decades of experience in the industrial markets across Australia.

Mr Greenberg said there were opportunities to invest in the urban industrial precincts across Australia, and Gateway had a strategy to create a core portfolio through active management and development.

The Hemmant site has low site coverage of 24 per cent. Gateway said the property at 237 Fleming Road was tailored to suit businesses that wanted quality warehousing, light fabrication spaces and external handstand.

Located in an infill, land-constrained location, the asset comprises 21 buildings providing 15,774sq m of net lettable area on a site of 6.55ha, with the opportunity to add value to the existing built assets through active tenant management.

The asset was introduced to Gateway Capital by Gavin Bishop and Anthony White of Colliers International.

The property is well-located, with good access to Brisbane Airport and the Port of Brisbane, and is pitched as ideal for a variety of business-to-business operations. It could also be used as a last-mile logistics location and Gateway is already planning to add value to the site.

Chief executive Stuart Dawes said the Hemmant purchase would complement the company’s recent Sydney and Melbourne acquisitions.

“While the asset presents as a good-quality estate with strong income over a number a of buildings, we see the opportunity to add value through medium-term development to create a long-term core asset consistent with our strategy,” he said.

Gateway last month acquired a property in Chilvers Road, Thornleigh, from a private investor for $36m. That property comprises a building providing 9113sq m of net lettable area on a 3ha site, with the opportunity to add value, including by developing vacant land.