Singapore real estate investment giant Mapletree its maiden Brisbane asset, a Coles distribution centre in the city’s south west for $105 million.
Mapletree’s Singapore-listed logistics trust picked up the 55,739sq m Heathwood asset on a 5.7 per cent yield.
The purchase brings Mapletree’s Australian portfolio to 10 assets of more than S$600 million ($613m).
Demand for Australian logistics property is offsetting an otherwise dour property market, with the e-commerce boom driving high demand in the large format logistics space.
Brisbane’s industrial sector has seen vacancy rates drop by 3 per cent over the last quarter, as larger tenants compete for limited space, according to a recent Knight Frank Brisbane industrial vacancy report.
Mapletree logistics trust chief executive Ng Kiat said that the acquisition would provide a stable and growing income to its unitholders.
The massive Coles distribution complex sits on a 151,600sq m land parcel with the opportunity to yield an additional gross floor area of up to 19,000 square metres.
The centre is located along the Logan Motorway 28 kilometres from Brisbane’s CBD.
“Brisbane’s logistics market poised to benefit from several major infrastructure developments [such as] Brisbane Airport’s second runway, the inland rail connecting Melbourne and Brisbane, and various rail and intersection upgrade projects,” Mapletree said.
Coles has a remaining lease term of 4.3 years until January 2023.
Mapletree has four Singapore-listed real estate investment trusts and six private real estate funds, with a S$46.3 billion ($47bn) portfolio of assets in the UK, USA and Asia Pacific.