Mapletree Logistics adds $114m Brisbane asset

24 October 2020

Mapletree Logistics Trust will acquire a 3rd Brisbane asset, the Acacia Ridge Distribution Centre from Blackstone for $114m.

The 110,00sm site is located at 338 Bradman Street, an established industrial and logistics precinct in southern Brisbane that is well-connected to the Brisbane city centre (18 km), Acacia Ridge Rail Yard (4 km), Brisbane Airport (35 km) and the Port of Brisbane (40 km) via the major expressways, such as the Ipswich Motorway and Logan Motorway.

Mappletree will acquire all the units in the property trust holding the asset from Alset Australian Mid TC Pty Ltd . At the property purchase price of $114.0 million, the Acquisition is expected to generate an initial net property income yield of 4.9%.

Given its proximity to the city and convenient access to key transportation infrastructure, the Acacia Ridge precinct has attracted many Australian and multinational corporations to set up distribution centres within the precinct. Furthermore, the location is well-poised to benefit from the government’s committed investments in several major infrastructure developments, in particular, the high-capacity inland freight rail connecting Melbourne and Brisbane.

The property is purpose-built with modern logistics specifications, comprising two buildings with a gross floor area of approximately 55,009 sqm sited with height clearance of 8 to 12 metres.

The property is fully leased to three established local industry players with a weighted average lease expiry of 5.3 years (by net lettable area) and annual rent escalations. Woolworths Group, has leased 84% of the asset to support its operations in Queensland and northern New South Wales. The remaining space is leased to an ASX-listed digital marketing company and a large privately owned freight forwarder in Australia.

Demand for logistics space in Brisbane is underpinned by several structural demand drivers, including a fast growing e-commerce sector and resilient domestic consumption. In Queensland, e-commerce logistics distribution and warehousing has shown strong growth of 5.2% annually, the highest of any state nationally. The COVID-19 pandemic has also spurred a major uptick in online shopping, particularly in the food, beverage and grocery sector. Consequently, surging sales of major supermarket players as well as consumer demand for fast delivery are translating to higher demand for prime logistics space with good connectivity.