Lendlease takes hit on Brisbane site sale

Lendlease has taken a major hit selling an industrial site in Brisbane’s Trade Coast precinct after five years.

The 3.46 hectare flood prone property, 50-80 Manton Street, Morningside, found favour with Centennial, for $20.24 million including GST.

The seller paid Brisbane Port Holdings $25.3m in April, 2019.

Cushman & Wakefield’s Gary Hyland and Owen Byle were the agents.

Business park planned

The Manton St asset is Centennial’s ninth in Brisbane’s Trade Coast.

The manager plans to proceed with a c17,000 square metre, multi-unit last mile logistics estate with 12 small-to-mid size tenancies in four buildings (artist’s impression, top) – lodged by Lendlease in 2023.

Alternatively, the new owner will consider amalgamating a 12,000 sqm space for a single tenant.

Due for completion December, the business park’s end value is expected to circle c$78m.

Centennial’s Enhanced Value Partnership, presently controlling real estate worth c$700m, will hold it (story continues below).

“The EVP fund’s mandate, now comprising 12 assets…typically targets mid-size estates and buildings located in core inner-ring and land constrained regions and valued between $10m-$75m upon stabilisation,” the manager’s head of Property Funds, David Cupit, said.

“We are very confident in our latest site asset given Morningside is a well-established industrial suburb and highly sought after based on its direct proximity to major road, rail, airport networks and Brisbane CBD,” he added.

Rental growth expected: agent

Morningside is five kilometres north east of the CBD.

“As a genuine last mile location close to Brisbane’s CBD, there are very few freehold sites of this scale available,” Mr Hyland said. 

“Strong rental growth is being realised in the immediate precinct which is in excess of 11 per cent over the past 12 months, compared to the national average growth of 6.6 per cent over the same period,” he added.

“Coupled with the lowest vacancy rates in south east Queensland at 2.4 per cent, Centennial has secured an institutional-grade land holding that is poised to offer future capital growth in a legitimised, core infill industrial location,” according to the executive.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.