Key Takeaways
- • Centuria Industrial REIT (ASX:CIP), Australia's largest listed pure-play industrial fund, is commencing a c.$40 million redevelopment at 51 Musgrave Road, Coopers Plains, Queensland, replacing three outdated units with eight new industrial units totalling 10,300sqm.
- • The facility targets underserviced smaller industrial tenants with unit sizes ranging from 1,500sqm to 3,000sqm, featuring internal clearances up to 8m, mezzanine office space, and flexible tenancy configuration enabling future unit combinations.
- • Brisbane industrial vacancy sits at 3.5% with constrained forward supply, providing strong leasing fundamentals; pre-leasing campaign is underway with anticipated delivery mid-2027 following a 10-month construction period.
- • Vaughan Constructions serves as the construction delivery partner; the infill Coopers Plains location within southeast Queensland's high-demand industrial corridor positions the asset to capitalize on persistent supply constraints.
- • The development replaces a $10.8 million acquisition settled July 2023, representing a value-add strategy that transforms the site into modern, flexible industrial accommodation aligned with tenant demand segmentation.
Summary
Centuria Industrial REIT has broken ground on a circa $40 million redevelopment project in Coopers Plains, Queensland, targeting the undersupplied market for quality smaller industrial facilities. Located at 51 Musgrave Road within Brisbane's infill industrial precinct, the project demolishes three existing units to construct eight new industrial units with a combined area of 10,300sqm. Unit sizes will range from 1,500sqm to 3,000sqm, specifically engineered to serve the smaller tenant segment that has historically faced limited quality accommodation options while commanding significant tenant depth and demand.
The facility design reflects modern industrial specifications essential for institutional-grade logistics and manufacturing operations. Key amenities include internal clearances of up to 8 metres, mezzanine office space, a 5.4-metre cantilever awning, two roller doors per tenancy, end-of-trip facilities, and 62 on-grade parking spaces. The site plan enables flexible tenancy configuration, with two pairs of units capable of combining to accommodate larger occupants, providing operational flexibility across the leasing cycle.
Southeast Queensland's industrial market fundamentals remain exceptionally tight. Brisbane's vacancy rate stands at 3.5% with limited forward supply, creating a supply-constrained environment that supports rental growth and high occupancy rates. Grant Nichols, CIP Fund Manager and Head of Listed Funds at Centuria, emphasized this market dynamic, noting that constrained leasing opportunities continue to define the region. A pre-leasing campaign is already underway to secure tenants prior to completion.
Vaughan Constructions has been appointed as the construction delivery partner, with an anticipated 10-month construction timeline targeting delivery by mid-2027. The redevelopment builds on Centuria's earlier acquisition of the site for $10.8 million in July 2023, demonstrating a classic value-add development strategy where land acquisition is followed by modern facility development to unlock embedded value and generate enhanced institutional-quality industrial stock.
The facility design reflects modern industrial specifications essential for institutional-grade logistics and manufacturing operations. Key amenities include internal clearances of up to 8 metres, mezzanine office space, a 5.4-metre cantilever awning, two roller doors per tenancy, end-of-trip facilities, and 62 on-grade parking spaces. The site plan enables flexible tenancy configuration, with two pairs of units capable of combining to accommodate larger occupants, providing operational flexibility across the leasing cycle.
Southeast Queensland's industrial market fundamentals remain exceptionally tight. Brisbane's vacancy rate stands at 3.5% with limited forward supply, creating a supply-constrained environment that supports rental growth and high occupancy rates. Grant Nichols, CIP Fund Manager and Head of Listed Funds at Centuria, emphasized this market dynamic, noting that constrained leasing opportunities continue to define the region. A pre-leasing campaign is already underway to secure tenants prior to completion.
Vaughan Constructions has been appointed as the construction delivery partner, with an anticipated 10-month construction timeline targeting delivery by mid-2027. The redevelopment builds on Centuria's earlier acquisition of the site for $10.8 million in July 2023, demonstrating a classic value-add development strategy where land acquisition is followed by modern facility development to unlock embedded value and generate enhanced institutional-quality industrial stock.
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