Mapletree buys Queensland Coles distribution centre

The Coles distribution centre at Heathwood in Queensland.
The Coles distribution centre at Heathwood in Queensland.

The Singapore-listed Mapletree Logistics Trust is close to lifting its portfolio in Australia to 10 assets with the purchase of a prime Coles distribution centre for about $100 million.

The group is targeting the purchase of a complex at Heathwood in Brisbane’s southwestern suburbs in a deal that could be struck at a yield below 6%.

The Heathwood distribution centre has multiple street frontages and sits close to the Logan motorway and is poised for future expansion.

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The 55,739sqm complex sits on a 15.1ha land parcel with three hectares of surplus land for further development.

It is on major trucking routes and services supermarkets in Queensland and northern NSW, and Coles and other tenants want to take more space in coming years.

The centre spins off a rent of $6.12 million with fixed 3% increases and the lease was recently extended for five years until January 2023.

JLL’s Tony Iuliano, Gary Hyland and Adrian Rowse are handling the deal.

The listed Mapletree fund has nine assets along the eastern seaboard and the company’s holdings are marked by stable and growing income streams, with the Australian assets having a long weighted average lease expiry of about 10 years.

The distribution centre site occupies more than 55,000sqm.

The trust is one of the region’s more acquisitive vehicles and in the last financial year picked up property in Hong Kong, Malaysia and Vietnam, as well as the local properties.

Its purchases include four warehouses in Sydney from private equity group Altis Property Partners for $85 million. Mapletree picked up warehouses in Mount Druitt, Smithfield, Wetherill Park and Huntingwood in that deal.

It later bought a portfolio of logistics properties in Victoria from Growthpoint Properties Australia for $142.2 million.

The group’s sponsor, Mapletree Investments, this month bought a logistics portfolio worth $US1.1 billion ($1.55 billion) in Europe and the US from Prologis. This prompted analysts to suggest the company would be open to exploring opportunities in new markets.

The listed trust also bought five warehouses worth $S778.3 million ($795 million) in Singapore recently from CWT International, a subsidiary of debt-laden Chinese conglomerate HNA.

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