The partners will build a logistics park at 142 Marine Drive in Brisbane (Image: Centennial Property Group)
A joint venture of Hong Kong-based Phoenix Property Investors and Australia’s Centennial Property Group has acquired a site next to Brisbane Airport for development of a logistics park with an end value of A$240 million ($155.7 million).
The piece of land at 142 Marine Drive measures 15.4 hectares (38 acres) and represents the last developable freehold site “of scale” in the Queensland capital’s TradeCoast economic zone, the companies said Friday in a release. The JV purchased the site from an undisclosed private owner for A$61.4 million.
The partners plan to build a multi-tenant estate providing 40,570 square metres (436,692 square feet) of gross lettable area, with tenancies ranging from 3,700 to 15,300 square metres, plus 3.4 hectares of outdoor hardstand areas. The project marks the seventh investment for Phoenix’s flagship $1.2 billion opportunistic fund series targeting developed Asia Pacific markets, especially Australia and Japan.
“Our investment in this major industrial and logistics precinct, reflects our high conviction in the sector — particularly inner-urban logistics, where structural tailwinds continue to drive demand,” said Trent Winduss, head of Australia at Phoenix.
Chasing Rent Growth
The Marine Drive project is Sydney-based Centennial’s ninth asset in TradeCoast, boosting the builder and fund manager’s portfolio within the precinct to an end value of A$513 million across 21 hectares. Nationwide the group has 76 assets and A$2.5 billion under management.
Trent Winduss, head of Australia at Phoenix Property Investors
The Brisbane buy follows the A$56 million sale of a Sydney logistics park to Canada’s Manulife by a Centennial fund backed by private equity giant KKR, as reported by Mingtiandi in April, and the A$19.1 million divestment of a Brisbane distribution centre in July to wind up Centennial’s first logistics fund.
TradeCoast targets industrial sectors like aviation, manufacturing and logistics. Mail carrier Australia Post is developing a 33,800 square metre facility in the precinct, which led all Brisbane submarkets with a 2.5 percent quarterly rent increase in Q1 as growth in the South and West, which account for the bulk of new supply, remained flat, according to Cushman & Wakefield.
“The limited availability of modern stock and freehold land within the northern TradeCoast and nearby industrial suburbs will continue to place upward pressure on rents,” said Paul Ford, joint managing director of Centennial.
The Marine Drive deal was brokered by Michael Callow and Dan Munnich of CG Property and Cushman & Wakefield’s Myles Fredericksen and Morgan Ruig.
Down Under Footprint
Real estate private equity investor Phoenix has managed more than $17 billion in assets since its founding in 2002, including $1.6 billion committed to Australia.
In November 2023, Phoenix teamed up with a joint venture of Australia’s Irongate Group and South Africa’s Burstone Group to acquire a Sydney industrial estate for A$57.25 million, following the firm’s entry into the Aussie industrial market five months earlier with a A$185 million tie-up with local heavyweight Lendlease to develop a Sydney logistics precinct.
The Hong Kong fund manager has also invested in office, retail, residential and hospitality developments Down Under, including the 2-4 Blue Street commercial building and the 172-room Kimpton Margot hotel, both in Sydney.
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