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City of Logan Emerges as Global Investment Hotspot

City of Logan Emerges as Global Investment Hotspot

The City of Logan is fast emerging as a global investment hotspot in south-east Queensland, buoyed by a strong economic track record, historic levels of infrastructure investment in the pipeline and business confidence on the rise.

Logan has continued to attract a number of multinational businesses and fast-growing start-ups looking to capitalise on the city’s growth potential and enviable location between Queensland’s capital, Brisbane and tourist destination the Gold Coast.

The launch of autonomous drone delivery services in Logan by Wing — a subsidiary of global technology company Alphabet — is just one of the businesses that have funnelled a total of $100 million of private investment into the city over the past 12 months.

Logan is just one of four locations in the world that now has access to Wing’s air delivery service, which flies a range of convenience items by air in just minutes.

Under the helm of chief executive James Ryan Burgess, Wing will focus their Queensland expansion plans in Logan first, with select households in the suburbs of Crestmead and Marsden already having access to the service.

Burgess said what made cities like Logan most attractive for investment was not only the demographic factors but the opportunities driven by growth.

“Logan is one of the fastest growing areas of Queensland, so that’s a great fit for us because drone delivery makes it much easier for people to get the things they need in rapidly expanding metropolises,” Burgess said.

“Logan is also a very innovative community, and the growth and excitement around the city makes it a great place for us to start our Queensland operations.”

Logan is located in the heart of south-east Queensland where around 70 per cent of the state live, and is predicted to be the second fastest growing city in this region.

In just over 20 years, Logan’s population is predicted to grow more than 50 per cent to around 548,000 residents.

This has led to an unprecedented level of infrastructure investment, with more than $18 billion of publicly funded projects under way to support the growing residential population.

 

 

Earlier this year, a $1.2 billion agreement — the largest of its type by any government in Australia, was signed by local authorities and private developers to build essential infrastructure in Logan’s Priority Development Areas Yarrabilba and Greater Flagstone.

This follows the completion of Transurban Queensland’s $512 million Logan Enhancement Project in August, which increased freight productivity by reducing road travel times along some of the busiest transport routes in the region.

Major infrastructure projects in the pipeline has triggered a surge in commercial activity along the Logan Motorway corridor, with large national and multinational businesses including Metcash Hardware, DHL, Queensland Logistics Service, Huhtamaki and Pinnacle Hardware setting up operations in Logan’s industrial precincts.

It’s not only the city’s efficient transport connections and affordable land driving this investment, Logan has advantages beyond its borders.

Within a 40 kilometre radius, Logan has access to a regional catchment of over 2.6 million people, a vast network of suppliers and a diverse pool of potential talent for employers to draw from.

GO1.com, the world’s largest on-boarding, compliance and professional development platform, recently relocated their headquarters from Brisbane to Logan to take advantage of this accessibility.

Co-founder Vu Tran said running a global company from Logan was a strategic decision for GO1.com and their future plans.

“Being in Logan has provided us with the opportunity and space we need to grow and also attract the talent that we need for our growing markets,” Tran said.

“Having businesses like Ikea, John Deere, Avery Dennison all based in the area means they are potential partners for us to engage with.”

City of Logan Emerges as Global Investment Hotspot 2

GO1.com has offices in the United States, South Africa, Vietnam, United Kingdom and Malaysia, and is on track for further expansion, recently securing more than $30 million of investment led by M12, Microsoft’s venture fund.

The increasing investment in Logan is reflected in the city’s economic report card – an annual 3.9 percent increase in the Gross Regional Product in the year ending 2017-2018 and the highest percentage of jobs growth in over fifteen years.

The arrival of businesses like GO1.com and Wing could mark the beginning of an exciting chapter in the city’s development.

For Wing, the city of Logan will be their largest investment in Australia to date and will play a role in shaping what the company will do in cities around the world.

“We’re really going to be investing here in Logan, learning as much as we can from the community and over time looking to apply that to other countries and cities that we may go to,” Burgess said.

“For now, it’s all our attention on Logan and making sure we offer a great service for the community.”

 

 

 

Source: theurbandeveloper.com

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Brisbane

Three Arnott’s Factories Sell for $633m

Three Arnott’s Factories Sell for $633m (1)

Asset-hungry Centuria Funds has rounded out a year of high transactional activity by snapping up two Arnott’s Biscuits factories in Queensland and South Australia for $236 million.

The Arnott’s assets were put up for sale after US private equity giant KKR bought the Tim Tam maker from food giant Campbell’s Soup in a $3.2 billion deal earlier this year.

The 150-year-old Arnott’s business is famous for its Tim Tam and Scotch Finger biscuits.

The first of the two properties, Arnott’s main base in Queensland located at 46 Robinson Road East in Virginia, was picked up for $211.8 million in a deal negotiated by CBRE and UBS.

The factory sits on a 7.18 hectare site the factory has a gross lettable area of 44,785 square metres and will be added to Centuria’s Industrial REIT.

In the leaseback arrangement Arnott’s signed a 30-year lease on the industrial asset. The deal was realised an initial yield of 5.8 per cent.

The second location, a smaller 23,593-square-metre Adelaide factory in the suburb of Marleston was acquired for $24.4 million on an initial yield of 5.8 per cent with a 12-year lease.

Three Arnott’s Factories Sell for $633m (2)

“The acquisition of these two high quality industrial assets materially increases CIP’s portfolio WALE and overall scale,” Centuria head of funds management Ross Lees said.

“Arnott’s is an iconic Australian brand with the leading market position in the manufacture and supply of Australian biscuits.

“The assets contain significant ‘mission critical’ infrastructure that is core to the tenants ongoing operations.”

Centuria highlighted its portfolio value would now increase to more than $1.5 billion, securing its position as Australia’s largest pure play industrial REIT and increasing its near-term prospects for inclusion in the ASX index.

The factory acquisitions will increase its portfolio WALE from 4.4 years to 7.2 years and introducing a new national tenant customer to the REIT.

Centuria noted that the Arnott’s assets were consistent with the fund’s focus on identifying quality real estate located within infill markets with close proximity to major infrastructure.

The Sydney-based fund manager has also independently revalued nine of its existing 46 properties, leading to an increase of $19 million or 9.5 per cent on prior valuations.

As a result of these revaluations, the portfolio’s weight average capitalisation rate firmed six basis points to 6.41 per cent prior to the acquisitions.

Centuria said its portfolio value would now increase to more than $1.5 billion, securing its position as Australia’s largest pure play industrial REIT and increasing its near-term prospects for inclusion in the ASX index.

A third Arnott’s facility located in Huntingwood, New South Wales was captured by Charter Hall for $397.8 million with a weighted average lease expiry of 32 years.

The Charter Hall managed Charter Hall Prime Industrial Fund (CPIF) has acquired a 50 per cent interest in the Arnott’s facility while the other 50 per cent interest will be acquired by the ASX listed Charter Hall Long WALE REIT.

“We are delighted to welcome Arnott’s as a tenant customer of Charter Hall, Charter Hall industrial and logistics chief executive Richard Stacker said.

“With a portfolio of iconic products [Arnott’s] can be found in 95 per cent of Australian households commanding about 61 per cent share of the Australian biscuit market.”

 

 

Source: theurbandeveloper.com

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Brisbane

Brisbane’s $3.6bn Queen’s Wharf: Construction Update

Brisbane’s $3.6bn Queen’s Wharf Construction Update (1)

Construction on Brisbane’s $3.6 billion Queen’s Wharf development is well under way, with five levels of basement closing nearing ground level.

The giant hole in the ground, which drops down 26 metres, is fast being transformed into Queensland’s largest basement and underground car park, set to provide up to 2,000 car parks.

More than three Olympic pools worth of concrete has already been pumped into the basement build with six satellite concrete pumps across site pouring more than 8,300 cubic metres of concrete into the foundations.

The number of on-site construction workers also is beginning to rise with the ranks of its current 250-strong workforce expected to increase to 500 by the end of the year and at peak be up to 2,000 workers on site.

Brisbane’s $3.6bn Queen’s Wharf Construction Update (3)

Privately-owned Destination Brisbane Consortium—which includes the Star group, developers Far East Consortium and Hong Kong-based Chow Tai Fook—is responsible for the integrated resort after being selected by the Queensland Government to transform the historic yet underutilises site.

“We are now at level four of the car park basements under the east end of William Street and expect to reach street level around Easter 2020,” Destination Brisbane Consortium project director Simon Crooks said.

“This means William Street will be reconstructed and used by construction traffic to build the remaining basements and podiums levels.”

“This time next year the podium levels will be well and truly sitting above George Street as we work towards completing the tower shells for fit out in 2022.”

Builder Probuild began excavation on the site in 2017, removing close to 400,000 cubic metres of material from the site, much of which has gone to Brisbane Airport for reclamation work and to build the BNE auto mall.

In July 2019, Probuild handed over the massive task of building what is Queensland’s largest construction project to construction giant Multiplex.

Brisbane’s $3.6bn Queen’s Wharf Construction Update (2)

The Queen’s Wharf precinct, which has taken more than a significant footprint of the CBD, will include four new luxury hotels, more than 50 new bars and restaurants, along with 2,000 residential apartments for the completed major development.

Fifth and sixth apartment towers have been approved for the site, offering 1,360 apartments, but the construction timing has not been confirmed.

The 500-metre foreshore, including the newly created Mangrove Walk and upgraded Bicentennial bikeway, opened in October of this year while the wharf precinct is expected to open in late 2022.

There is significant public space integrated into the design of the development as well—the equivalent of 12 football fields.

This public space will help to accommodate the additional 1.39 million visitors expected in Brisbane as a result of the project. The development has also earned a 6-star Green Star Communities rating.

In addition to the main works, attention in 2020 will turn to the public realm as construction of the pedestrian bridge to South Bank will commence and works for The Landing will continue. Piling at South Bank is expected to start mid-way through the year.

“The Neville Bonner Bridge works are expected to kick-off with site establishment at South Bank in February 2020,” Crooks said.

Victorian company Fitzgerald Constructions, responsible for Melbourne’s Jim Stynes Bridge and Seafarers Bridge, will oversee the construction of the Neville Bonner Bridge, named after the Queensland federal MP.

 

 

Source: theurbandeveloper.com

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Brisbane

University of Queensland Buys Historic Chambers Building for $47m

University of Queensland Buys Historic Chambers Building for $47m

The 130-year-old Chambers building and an adjoining eight-storey office building located in Brisbane’s golden triangle has changed hands for $47.4 million.

The University of Queensland snapped up the two Brisbane assets from a Primewest fund with plans to occupy both the historic building and boutique A-grade building as part of its CBD campus.

The Primewest fund purchased the buildings, at 308 Queen Street and 88 Creek Street in 2016 for $37.4 million from Unity Pacific Group. The assets were listed in August this year with the aim of hitting the $50 million mark.

Brisbane’s golden triangle has seen major assets in play amid demand in the Brisbane office market sector.

German funds giant Deka Immobilien is understood to be exploring 66 Eagle Street, a $370 million move.

While RG Property listed its 410 Queen Street office tower in September, with hopes of hitting north of $50 million for the asset.

Sydney-based development group Kyko Group purchased the 201 Charlotte Street office tower for $126.7 million in May.

The sandstone Chambers building transaction marks the third time the Italian Renaissance-inspired asset has changed hands in its 130-year history.

Primewest director David Schwartz said the assets had provided investors in the fund with strong cashflow and capital growth since the 2016 purchase.

Combined the buildings, which span 3,516sq m of office space and 985sq m of retail, currently return a net income of $3.32 million and sit at 98.5 per cent occupancy.

Primewest has more than $4 billion of assets under management across Australia and the USA’s west coast.

The Chambers building was completed in 1885 and designed by Queensland colonial architect Francis Drummond Greville Stanley. It was also the long-time home of the National Australia Bank.

 

 

Source: theurbandeveloper.com

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