Arrow Capital Partners has entered into contracts on three new acquisitions in Brisbane for a total initial consideration of around AU$50m, to develop new logistics assets of over 70,000 sqm.
The first is an industrial site in Brisbane’s prime Trade Coast precinct. It consists of a four-year-old warehouse and hardstand facility leased to leading Australian construction group, Besix Watpac, until September 2028 with surplus land that allows for the development of a further 10,000 sqm which is expected to commence in early 2022.
The second is a two-hectare development site in Yatala, located between Brisbane and the Gold Coast. The land has been acquired with construction to commence speculatively to create 10,000 sqm of prime warehouse space with completion scheduled for Q4 2022.
Finally, Arrow has acquired approximately 14 hectares at the Citiswitch Industrial Estate to develop circa 50,000 sqm across a number of mid to larger units, ranging from 3,000 sqm to 20,000 sqm. Construction will commence within the next few months with completion expected at the end of 2022.
These latest acquisitions by Arrow bring its investment in the SIRE Australia venture to over $450m. Arrow continues to seek more standing investments, development sites and joint ventures across Australia to continue the growth of the existing portfolio.
Arrow sees a shortage of supply in a number of markets as the e-commerce penetration effect continues to accelerate at a fast pace, consistent with its experience in Europe where Arrow’s portfolio has been growing rapidly and now exceeds $3bn.