Altis, Maximise invest in business parks

The Cullen Avenue West holding is diagonally adjacent to the Hamilton border.

Altis Property Partners has scooped up a two hectare business park in Brisbane’s inner north Eagle Farm – spending $32.25 million.

The deal for the Kingsford Smith Corporate Park at 112 Cullen Avenue West, on the north east corner of Theodore, was with Dexus, which paid the City of Brisbane Investment Corporation $20.7m in early 2015.

The site forms part of the Trade Coast precinct, which after the CBD, is Queensland’s second largest employment zone.

The business park Maximise is planning at Truganina.

Altis will hold it in the three month old Real Estate Equity Partnership 4 (REEP4) – which has a $600m war chest.

Kingsford Smith Corporate Park

Diagonally adjacent to the Hamilton border, the Eagle Farm industrial estate contains 12,034 square metres in six suites.

Brisbane City Council and Plastral each occupy two units.

Others are rented by Freedom Fuels, elevator installer TK and Scout Aerial Services.

With a short Weighted Average Lease Expiry, Altis will upgrade the business park as spaces become available, with aim to re-rent at a premium.

“The property is located within the Northshore Hamilton Priority Development area that will undergo significant redevelopment and infrastructure investment over the next decade to accommodate the Brisbane 2032 Olympic Games Athletes Village, which will provide a mix of commercial, retail, residential and retirement assets,” the buyer said.

Type of asset REEP4 targets: manager

Altis director, Investment Management and Capital, James King, said the Eagle Farm asset’s near-term positive rental reversion opportunity and diversified income stream, made it a suitor for AREEP4, which was seeded last November and has an initial $600m in capital commitments.

“This acquisition reflects the exact type of asset the fund is targeting with the ability to access value  by increasing the net rental income and extending the WALE in a tightly held precinct with the lowest vacancy rate of 0.6pc in the Brisbane industrial market,” he added.

“Despite the headwinds caused by the inflationary environment we find ourselves in, we feel strong supportive fundamentals remain for the industrial sector at the right entry prices,” according to the executive.

Gareth Price, director of the fund manager’s Capital Transaction team, said mooted local infrastructure investment was also a driver.

“The Northshore Hamilton Priority Development area will undergo a major transformation into a vibrant, mixed-use precinct,” he said.

“This new industrial acquisition fits within our strategy of buying in core markets, centrally and conveniently located to employment hubs, with access to key infrastructure,” according to the executive (story continues below).

Dexus recently outlaid over $100 million on a west Melbourne industrial site.

Shaun Hannah, executive director, added “we are at a key juncture in this new real estate cycle, having to adjust to the higher interest rate environment and construction cost pressures [and] one of our biggest challenges is filtering the current heightened volume of deal flow to find the best relative value opportunities for our investors, particularly in the industrial and residential sectors”.

The property was one of five divested by Dexus in December, all up, for $483m.

Dexus sold 8 Nicholson Street, East Melbourne, for $213.7 million.

The biggest asset in that sell-down was an East Melbourne office which traded to Shakespeare Property Group for $213.7m.

Altis spreading wings

The Eagle Farm acquisition comes three months since Altis, for a different trust, acquired its maiden Western Australian asset – a 9.03ha industrial investment with land available for immediate development, at Hazelmere, north east of Perth.

That holding set it back $31.5m

The fund manager is intending to construct 13,000 sqm on that block in the medium term.

Altis also boosted its Build to Rent development pipeline last February with a Preston, Melbourne, site.

That deal, with the long-time occupier, Paintmobile, was worth $14.04m.

Maximise invests in west Melbourne

Meanwhile in Melbourne’s Truganina, Maximise has paid $33m for an 8.9ha parcel known as 211 Leakes Road, but predominantly facing Palmers.

The land formed part of an 11ha amalgamation – a piece of which recently made way for Suleman Gateway, a convenience retail and office/warehouse investment.

Maximise is planning 180 light industrial units on its block, ranging from 212-685 sqm, the estate will be known as MODE Business Park West, or Mode West.

“This…project aims to mee the demand for smaller scale, affordable, light industrial spaces in Melbourne’s fast growing west,” managing director, Claudio Romano, said.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of