A North Lakes industrial site has sold for $114 million, marking a dramatic value increase from its $16 million purchase price in 2021. The sale highlights the remarkable growth in the city’s outer northern suburbs’ industrial land values, which have more than doubled over the past three years.
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The 25-hectare site at 109-135 Boundary Road was purchased by logistics giant ESR from Garda Property Group, which had secured development approval in 2022 for a 100,000-square-metre industrial estate.
As part of the sale agreement, Garda will invest an additional $11.2 million to complete remaining civil works, intersection improvements, and road construction. The property group had already initiated earthworks and begun civil development before the sale.
For this project, Garda expected construction to commence early 2023 and completed by 2024. However, rising construction costs have prompted the real estate group to focus more on buying existing assets, despite maintaining its strategy of developing and holding industrial properties.
ESR Australia and New Zealand CEO Phil Pearce said the acquisition would allow the company to expand its presence in Brisbane’s supply-constrained market, which is benefiting from strong population growth in South East Queensland.
“North Lakes is perfectly positioned to provide seamless connectivity to major business centres and national road, air and rail networks. Situated alongside the Bruce Highway / M1 and near the Gateway Motorway, the subject site sits 32km north of Brisbane’s CBD, 40 minutes drive from the Sunshine Coast and only 22 minutes from both Brisbane domestic and international airports,” Garda stated in its website.
The logistics company has announced plans to transform the North Lakes site into a premium industrial estate, continuing the original vision for a master-planned development that would accommodate businesses of varying sizes.
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This transaction highlights the robust demand for industrial land in Brisbane’s northern corridor and demonstrates the significant value appreciation in the region’s industrial property sector.
Published 7-November-2024
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