Centuria Industrial REIT seals new leases at Southeast Qld facility
New jobs created for Bundamba
- Australia Post leases 50% of 10,200sqm distribution centre; last-mile micro freight and mail distribution facility
- CIP’s newly completed distribution centre now fully leased on dual tenancy; tightly held Brisbane-Ipswich market
- Creating new jobs for the Bundamba area.
Australia’s largest listed pure-play industrial REIT, Centuria Industrial REIT (ASX: CIP), today confirmed it has fully leased its new 10,200sqm distribution centre at 42 Hoepner Road, Bundamba QLD, with Australia Post securing the final tenancy.
Australia Post joins Jaycar Electronics Group (Jaycar) who also committed to the prime grade facility earlier this year. Both occupiers signed five-year leases across c.5,100sqm each. Their addition to the Citiswich Business Park will create new jobs for the local area.
The new occupants also add to the increased leasing activity and strong tenant demand throughout the Brisbane-Ipswich Western Corridor with vacancy rates dropping to 1.4%1. Overall, vacancy rates across the wider Brisbane industrial market are c.1.5%1.
CIP’s recently constructed, sustainable industrial asset lends itself well to ecommerce and transport/logistics operators, providing accessibility to 714,000 households within a 60 minute drive.
Jesse Curtis, Centuria Head of Industrial and CIP Fund Manager, said, “We are pleased to welcome our longstanding customer, Australia Post, to our new Bundamba facility and to expand our relationship with such a leading national icon, assisting with its last mile and logistics growth strategy.
“We identified Bundamba as a strategic location in Brisbane’s southwest market and developed the sustainable prime-grade facility to capitalise on the area’s access to a growing population and connectivity to major arterial roads. The calibre of tenants we have attracted in Australia Post and Jaycar is a testament to both the quality of our asset and understanding our customers’ needs.”
Australia Post will utilise the distribution centre as a dedicated last mile micro freight and mail processing facility to ensure efficient postal delivery throughout Brisbane’s Western Corridor. During 2021, Australia Post delivered 2.64 billion items2, its ecommerce division grew 31.8%1 and more than 2.1 billion letters were delivered across Australia1.
Australia Post also leases c.5,200sqm from a CIP transport logistics facility at 6 Macdonald Road, Ingleburn NSW.
Jaycar is expanding its operations throughout Queensland and the new premises provides increased capacity to meet its retail and ecommerce needs. The facility also provides better connectivity to major state arterials, improving the operator’s transport logistics.
Ipswich Mayor Teresa Harding said she was very pleased to welcome Australia Post and Jaycar to Bundamba, which is the home of advanced manufacturing and logistics.
“Located at the junction of four highways and within an hour’s drive from both an international port and a major primary production area, the facility is in a strategic location for many major industrial occupiers. Centuria has built a sustainable industrial property that will be home to a distribution centre that will create local jobs here in Ipswich,” Mayor Harding said.
The 42 Hoepner Road facility was developed by Centuria Capital Group’s development division and provides an 11 metre clearance, four recessed loading docks, 13 on-grade roller shutter doors, a 9,100sqm concrete hardstand with B-double access and 600sqm of office space.
The super prime-grade property boasts a five star Green Star rating providing sustainable features, such as rainwater harvesting and a 99kw solar panel system.
It is the third property owned by CIP in Bundamba and the nineteenth within Queensland, taking CIP’s total investment in QLD to ~$900 million.
1. Source: Australia’s Industrial and Logistics First Half 2022
2. Australia Post 2021 Annual Report
Centuria Capital Group secures a $70.6 million industrial logistics facility in North Rocks, NSW, on behalf of US private investment firm, Starwood Capital’s, Last Mile Logistics Partnership (LMLP).
Centuria Capital Group has successfully exchanged conditional contracts to divest two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale NSW, which is anticipated to deliver a forecast 13.8% IRR to the assets’ closed-ended fund investors.