Centennial's speculative $100-million industrial development in Brisbane’s inner south has completed—and another is under way north of the CBD.
Finished is the The Link Industrial Park at Willawong, 20km from the Brisbane CBD and comprising 32,542sq m gross lettable area across three warehouses housing nine tenancies developer by Centennial and joint-venture partner MaxCap Group.
Two tenancies were leased during construction—2690sq m by global transport giant FedEx and 1441sq m on a five-year lease by Australian hospitality group Vendella.
The project is an amalgamation of three sites, 142 and 162-172 Sherbrooke Road, which the partnership acquired in January, 2022.
According to the partners, the completion “represents an additional strategy from the national fund manager and developer’s traditional business model of regenerating underutilised or vacant mid-space warehouses in last-mile or urban industrial infill regions and transforming them into institutional grade assets”.
Centennial head of property funds David Cupit said the Link Industrial Park represented an opportunity to develop in a “highly land-constrained infill region”.
“In Acacia Ridge, which is widely regarded as the inner-south’s industrial heartland, there has been no let-up in demand for last-mile industrial sites,” Cupit said.
“That demand is now pushing into neighbouring areas such as Willawong, which is establishing itself as an industrial hub in its own right.”
Centennial has moved on another speculative logistics project, breaking ground on a 16,300sq m project in partnership with KKR, this time in the north Brisbane suburb of Geebung.
According to Colliers most recent Industrial & Logistics snapshot, long-term fundamentals in the sector remain robust, although short-term demand headwinds “are still prevalent as the sector continues to unwind and normalise following a period of unsustainable market conditions”.
Brisbane represents 40 per cent of the new floorspace delivered in the second quarter of 2024, up from 16 per cent of the first quarter and “underpinned by strong development activity in the southern growth corridor of Brisbane”.
