Melbourne developer Victoria Investments Management Group has purchased Australia Post's former Queensland distribution centre for $26 million and is planning a mixed-use development on the 9.78 hectare site.
The property, at 1677 Beenleigh Road, Underwood, in Brisbane's south-east, went under contract 12 months ago, and features an industrial facility of around 24,873sq m which served as Australia Post's distribution centre for 25 years until its relocation to Redbank in 2019.
Leo Primus, VIMG's development manager, said the property, located around 15km from Brisbane's CBD, was the group's largest Queensland acquisition to date.
“We are looking forward to working with the local community to develop a high-quality mixed-use precinct.
“Our intention is to landbank the site for the short- to medium-term and we are in discussions with a number of tenants to take advantage of the considerable logistics infrastructure onsite.”
Primus said a development application had been lodged for the ultimate development that would include medium-density residential offerings—including retirement and aged care—along with commercial, medical and retail uses.
The site, positioned in Brisbane’s southern growth corridor and alongside Underwood Marketplace Shopping Centre, was marketed via an expressions of interest campaign through Simon Beirne, Anthony White and Brendan Hogan from Colliers International.
Hogan said the limited supply of land parcels of this size in the southern Brisbane suburbs was one of a number of drawcards for buyers.
“A range of industrial groups as well as local and offshore developers showed strong interest in the property thanks to its specialised centre zoning which allows for flexible uses.”
The deal comes in the wake of a number of recent developments in the nearby suburb of Rochedale, which Hogan says is achieving record prices for land and dwelling rates.
"The area is now the leading subdivision location in this region with strong demand from owner occupiers and a median house price of approximately $1 million.
“Essentially VIMG saw this opportunity as a short-term investment play with strong redevelopment potential in the future.”
Colliers International industrial specialist, Simon Beirne, said VIMG’s landbanking strategy was a sound one.
“Given its proximity to the road infrastructure network, the distribution facility serviced Australia Post parcel division well and would be well-suited to accommodate similar supply chain occupiers,” Beirne said.
“While the successful purchaser was a residential developer – we had strong interest from the logistics REIT sector, highlighting the quality of the existing improvements.”
VIMG is an integrated group engaging in residential and commercial property development, with offices in Sydney, Melbourne and Brisbane, along with co-operative offices in Beijing, Shanghai and Guangzhou in China.