Thursday 24th March 2016
Developer Pellicano has made its first industrial property play in Brisbane since 2007.
It has acquired a 46,698sq m site at Darra, in the city’s southwest for $10.5 million.
The property has 220m of frontage to Archerfield Rd and sits on three titles, with one lot of about 7,000sq m cleared and ready for development.
Formerly home to ABB Australia, the industrial holding at 24-48 Archerfield Rd includes a 12,000sq m B-grade building suitable for lease.
Managing director Nando Pellicano said the firm has a longstanding relationship with ABB Australia that facilitated a “smooth sale”. It was negotiated by Colliers International and Cushman Wakefield.
Pellicano designed and constructed ABB’s Melbourne facility about 10 years ago and retained ownership of the asset.
Mr Pellicano said market conditions were favourable for the purchase of large sites in industrial hubs like Darra.
“Large unoccupied buildings are currently in low demand making it an ideal time to secure sites at competitive rates with the potential for redevelopment,” he said.
“The Darra site is a prime Brisbane infill site, which presented substantial land and improvements. Initial plans are underway for a masterplan redevelopment of the entire site”.
“We believe over the next 12 to 18 months the industrial leasing market will show strong signs of improvement… as a flow-on effect from the residential boom and the fundamental shift of the Australian dollar.”
The acquisition comes on the back of the purchase of seven residential development sites across the city and the Gold Coast totalling more than $82 million, resulting in a pipeline of more than 3550 apartments.