QLD Bundamba industrial parcel expected to realise $100 million in sales

BRISBANE, 26 July 2023 – Aliro is set to capitalise on pent-up demand for industrial land in South-East Queensland as it looks to realise $100 million in sales for a prime shovel-ready parcel in Bundamba.

The 20-hectare site at 88 Hume Drive lies within the Citiswich Business Park, home to names such as Costco, Saab, Australia Post and Australian Pharmaceutical Industries, and soon to welcome logistics operator Northline.

It’s being offered via private treaty as six sub-divided lots, ranging upwards in size from 2 hectares – with two of the six lots already under negotiation.

Shaun Canniffe, Senior Director, Head of Industrial QLD at JLL, highlighted the timeliness of bringing Elevation at Citiswich to market, given the region’s ongoing scarcity of industrial land.

“Demand for industrial property has grown sharply during the last two years particularly,” Mr Canniffe said.

“At the same time, almost all large-scale land coming to market has come under institutional ownership and therefore been available only for lease, via design and construct deals.

“To have this kind of shovel-ready land within a core industrial region is rare.”

Aliro Executive Chairman David Southon said the Brisbane market remained a key focus for the property fund manager, which already had projects under way in Wacol and Geebung.

“Aliro is committed to growing our pipeline in Brisbane given its strong supply/demand fundamentals, robust population growth forecasts, and significant infrastructure spending, particularly in the lead-up to the 2032 Olympics,” he said.

“Elevation at Citiswich presents an excellent opportunity to capitalise on strong demand drivers and supply the market with much-needed industrial land.”

Mr Canniffe said the state’s significant affordability advantage would further tap into the trend of interstate occupiers looking to establish or extend their Queensland footprint, competing for property with local buyers.

“There has been a wave of new entrants to the Brisbane industrial market off the back of strong business growth and genuine lack of site opportunities in the Sydney and Melbourne markets as values peak and industrial land in those cities become unobtainable,” he said.

While data from JLL Research shows Brisbane’s southern land market has grown in value by 42% since 2020, this significantly lags behind Sydney’s outer west (84%), Melbourne South East (132%) and Melbourne West (215%) – meaning Brisbane’s affordability factor has increased relative to its southern counterparts.

“Queensland still offers an affordable solution for these groups, with the added benefit of good access to labour markets,” Mr Canniffe said.

“Local council and the state and federal governments have also underscored their support for growth across the region by committing funding for big-ticket infrastructure projects including road and rail.”

Zoned for Low Impact Business and Industry, the subdivided Elevation lots offer flexibility in terms of usage as well as size.

“A key advantage for industry is the precinct’s efficient access to South-East Queensland’s major arterial networks,” said Mr Canniffe.

“Hume Drive has proximity to the Ipswich Motorway and Cunningham and Warrego highways and access to critical transport infrastructure.

“This allows occupiers to service a huge population base.”

It also positions buyers to be part of the growth story of South East Queensland, expected to double its population during the next 20 years.

“With a rare opportunity to secure a presence in one of South-East Queensland’s most prominent growth corridors, we expect strong interest in this significant land offering,” Mr Canniffe said.