PROPERTY fund manager Centennial and joint venture development partner MaxCap Group have kicked off construction on their $100 million speculative industrial development Link Industrial Park project at Willawong in Brisbane’s south.
Queensland’s industrial builder McNab is working on the project.
The multi-unit build will yield nine premium office and warehouses spread across three buildings, and deliver around 32,000 sqm of gross lettable area.
Centennial has acquired and developed a portfolio of 63 industrial assets worth in excess of $1.2 billion in five years.
Centennial’s executive director and CEO – industrial and logistics, Paul Ford, said The Link Industrial Park presented an opportunity to partner with MaxCap to create an institutional-grade, mid-space logistics estate in a highly land-constrained precinct, from the ground up.
“The majority of larger institutions generally only target tenants requiring 10,000 sqm and upwards, thereby starving smaller businesses from accessing quality A-grade industrial space for their employees.
“In a competitive jobs market where it’s hard to attract and retain employees, we expect The Link Industrial Park will be a major drawcard for tenants looking to provide high-quality work surroundings, together with a wide range of sustainability initiatives which support a five-star facility with carbon-reducing initiatives that are more easily incorporated into new build project.”
CBRE data shows that while vacancies in the broader Brisbane industrial market have remained relatively stable at 0.6%, Brisbane’s South precinct now has the lowest vacancy rate in the state at 0.3%, tightening from 0.5% over the first half of 2023.
As part of Brisbane City Council’s development approval, Centennial and MaxCap will also undertake a revegetation of ecological space along Oxley Creek, which comprises almost 17,000 sqm that will be dedicated to Council on completion.
Simon Hulett, MaxCap’s head of direct investment said the investment adds geographical and sector diversity to the MaxCap Diversified Opportunity Fund and brings another highly sophisticated joint venture partner into the portfolio.
“Commencing construction now highlights our confidence in the product and provides prospective tenants with certainty of delivery in a constrained market.”
“With low vacancy and limited supply of this scale, the Link presents a compelling opportunity to deliver a differentiated product within an infill area experiencing sustained occupier demand,” he said.
Jack Barratt and Paul Flego of Agency HQ and Jack Hardy and Peter Turnbull of CBRE have been appointed leasing agents of The Link Industrial Park
Completion is expected in Q2 2024. The Link Industrial Park will achieve a total site coverage of about 50%.
