Charter Hall snaps up Brisbane Airport site from United

Charter Hall will develop a 50,000 square metre logistics estate adjacent to Brisbane Airport after buying an 8.4-hectare site from United Petroleum.

The fund manager, which like other institutional investors is looking to grow its exposure to industrial property, paid $43 million for the land parcel at 57 Culya Street in Pinkenba.

The site lies within Australia TradeCoast, Brisbane’s major industrial and trading precinct being developed on surplus land around the airport and the Port of Brisbane.

United paid $12 million for the site in late 2014 and planned to develop it into a petrol terminal, before abandoning the idea and deeming it surplus to requirements and selling it to Charter Hall.

Charter Hall’s head of industrial development, Andrew Simons, said the fund manager was eager to acquire further land in the precinct to support its expansion plans following the successful leasing of another nearby estate – 200 Holt Street in Pinkenba – which secured Australia Post, DHL and Amazon as tenants of newly developed warehouses.

CG Property director Michael Callow brokered the off-market transaction.

Mr Callow said land supply in the Australia TradeCoast precinct was extremely tight with the United site being one of only a handful of sites available to cater for increased demand.

“Since the start of the year, land rates in Brisbane have been increasing rapidly due to a shortage of supply and South-East Queensland is starting to face a severe land shortage.

“Demand is outstripping supply across all regions, which was reflected in the record sale rate above $500 per square metre for the site.

Highlighting the demand for industrial assets from fund managers, Sydney-based EG said on Monday it had paid $33 million for an industrial property at 81-87 Beauchamp Road in Matraville in the city’s eastern suburbs, leased to Home Timber and Hardware (a subsidiary of Metcash)

It was the 10th property acquired for EG’s Australian Core Enhanced Fund. Trent Gallagher of Colliers International brokered the deal.

In Melbourne’s north, ASX listed Palla Pharma is selling an 8.2-hectare site that is expected to sell for more than $45 million.

The property at 2-50 Glenelg Street, Coolaroo is being offered with a leaseback to Palla Pharma through Colliers’ Gavin Bishop, Sean Thomson, Damian Marinelli and Nick O’Brien.

“Opportunities to acquire such significant scale with genuine flexibility rarely become available within Melbourne’s tightly held northern market,” Mr Bishop said.

“Coolaroo is a land-constrained market within proximity to large residential catchments, earmarked for strong rental /capital growth prospects in the future, further set to benefit from the rapid growth of e-commerce.”

Extracted from AFR

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