Ascendas to acquire Crestmead facility from Goodman

24 December 2020

Ascendas has announced the acquisition of a logistics asset to be developed by Goodman at 500 Green Road, Crestmead, in Brisbane.

Crestmead is an established hub for interstate, intrastate and metropolitan distribution given its close proximity to key motorways such as the Logan, Gateway and Pacific Motorways that provide connections to key population areas on the eastern seaboard.

Ascendas has entered into a land sale agreement for the 6.2ha freehold site, along with a development management agreement with the Goodman for the ensuing development of 38,650sqm logistics / warehouse facility.

When completed in 2021, the new property will have a highly efficient and flexible design, offering warehouse sizes from 9,000 sqm to 38,000 sqm, 12.2m ceiling height (ridge), 23 on-grade electric roller shutter doors, 15 m wide cantilevered awning and full LED lighting supplied by solar panels fitted on the roof structure.

The total consideration is $70.3m. The yield for the first year is approximately 5.6%.

The acquisition of the land was settled on or around the 23rd December and the development of the Property is estimated to complete in 4Q 2021. The Developer will provide a 2.5-year rental guarantee from the completion of the Property for any vacant space.

Mr William Tay, Executive Director and Chief Executive Officer of the Manager said, “This acquisition extends our logistics footprint in key distribution markets that will benefit from the robust domestic consumption and e-commerce demand in Australia. In addition, the new logistics development is expected to achieve a 5 Star Green Star rating on completion, further enhancing the overall quality of our Australian portfolio.”

The property is situated in a growing industrial corridor in Brisbane southern corridor. The sit is positioned between a 36ha vacant site acquired by Mapletree Logistics Trust in November 2019 for $95m ($264/sqm) and the large Metcash Distribution facility acquired by Charter Hall in January 2019 for $183.6m.

500 Green Road will be Ascendas Reit’s tenth logistics property in Brisbane. Total net lettable area of the logistics portfolio in Brisbane is expected to increase by approximately 21% to 220,532 sqm