Area update Northern TradeCoast, including Eagle Farm and Pinkenba and Hendra

by admin-king | 7th October 2014

Eagle Farm has continued its historical desirability with numerous leasing transactions of varying sizes and rents negotiated over the last six months. The lack of speculative development (now nil) has produced a pent-up demand for A- and even B-grade buildings from 2000 m2 to 6000 m2 across the entire Australian TradeCoast. Recent speculative developments in Eagle Farm have been leased prior to completion at healthy rents and for long terms with minimal incentives.

The area also experienced a healthy take-up of smaller sites under 500 m2, such as the recent leases of 2/49 Links Avenue, Eagle Farm at $121/m2 and 7/787 Kingsford Smith Drive at $186/m2.

The Northern TradeCoastand particularly TradeCoast Central continue to attract quality owners and tenants to a range of design and construct opportunities. Construction is complete on a unique facility for AutoNexus, a global vehicle logistics and fleet conversion company. The construction included 420 m2 of office space and 2800 m2 of warehouse and fitting sheds as well as extensive outdoor storage (for over 2000 vehicles) covered with protective hail netting. This is in addition to another large precommitment of 21 100 m2 in the estate by Oztrail, a leading supplier of camping products.

The recent demolition of theBrettsWharfsite inHamiltonhas signalled the next stage of the Brisbane City Council’s upgrade ofKingsford Smith Drive. The Council plans to begin construction to expand the road from four lanes to six, but it has indicated that works won’t begin until the end of 2015 and will be completed in 2019.

Sales in both Eagle Farm and Pinkenba have shown encouraging signs of improvement with the sale of established sites, including 771 Kingsford Smith Drive, Eagle Farm selling for $2.05 million and 680 Macarthur Avenue Central, Pinkenba selling for $9.4 million to a private investor at a passing initial yield of 8.74%.

Recently snapped up by Charter Hall was180 Holt Streetfor $25 million at a passing yield of 9.11%, which reflects the short lease tail and the fact that the sitting tenant (Toll NQX) has committed and moved to a much larger site at Karawatha. This site is now well positioned with Charter Hall also controlling the adjacent 3.14 ha site at 188 Holt Street, which provides a vast expansion opportunity for either now or the future.

In yet another large Tradecoast Transaction, Dexus has purchased a 3.43 ha site at 441 Nudgee Road at Hendra, from Property Solutions for $27 400 000. This reflects a yield of 8.54%, when bearing in mind the WALE (weighted average lease expiry) of 1.75 years, it is a very healthy indication of the Tradecoast desirability and investor/shareholder demand. This is the last major industrial holding owned by Property Solutions on the Northside, as they turn their attention to their residential developments.

David Knox  0408 548 281

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