Trilogy secures Brisbane industrial investment for a discount
Charter Hall is selling a securely leased north Brisbane industrial investment for a loss on its 2021 outlay.
The 2.69 hectare logistics facility with an office, showroom, warehouse and 120 car parks at 45-53 South Pine Road, Brendale (pictured, top), found favour with local outfit, Trilogy Funds, for $29 million.
The Trilogy Industrial Property Trust – with 15 assets worth a total $253m – will hold it.
Charter Hall paid $32.25m for the Long WALE REIT in September, 2021.
A month later, it paid $19.7m for a 4.84ha industrial investment in the street – #23-25.
Coincidentally that asset was divested too this month – for $23.8m – to Partners Private in collaboration with KordaMentha Property Funds.
Zoned Central, close to residential and Strathpine train station, the properties are about 23 kilometres from the CBD.
TIPT portfolio tips $282m
The South Pine Rd property will be TIPT’s second greater Brisbane industrial asset.
With 18,255 square metres, it has been occupied 15 years by education resources and toys supplier Modern Star, which has 5.5 yrs left to run on its existing agreement (story continues below).
“We are continuing to see strong demand for large industrial properties in the current south east Queensland market, with less than one per cent vacancy for buildings over 3000 sqm,” Trilogy Funds executive director, Lending and Property Assets, Clinton Arentz, said.
“Certainly, industrial property continues to be an attractive investment proposition given long term structural themes playing out in commercial property markets globally, including ongoing robust demand and modest supply,” he added.
“The industrial property sector is still experiencing positive post-pandemic impacts as increased e-commerce penetration created additional demand for warehouse space,” according to the executive.
“This includes ongoing annual rental growth, higher capitalisation rates, low vacancy rates and land rich assets that provide potential for solid returns, capital appreciation and expansion projects to add value across the industrial sector.
“We look forward to seeing the evolution of the trust’s property composition in the future as this structural shift plays out with our current focus on manufacturing, logistics and distribution centres.
“The prime location of the Brendale property in one of south east Queensland’s premier industrial business precincts, combined with its size and strong tenant covenant will make this a valuable additional to the trust’s portfolio”.
TIPT also holds product in New South Wales, the Northern Territory, South Australia and Victoria.
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