CLARENCE PROPERTY EXPANDS TRADECOAST FOOTPRINT WITH $42 MILLION RIVERGATE ACQUISITION

Clarence Property has acquired a $42 million industrial headquarters in Brisbane’s tightly held Australia TradeCoast precinct, its second major metro purchase in as many months and part of a $200 million expansion strategy across office, retail and industrial sectors.

The high-quality facility at 69 Rivergate Place, Murarrie, is 100 per cent leased to Yamaha Motor Australia and will be added to Clarence Property’s flagship Diversified Fund.

The acquisition follows Clarence’s $40.4 million purchase of Metro Middle Park in Brisbane’s southwest and last year’s $119 million acquisition of 120 Edward Street in the Brisbane CBD, bringing the group’s total metro acquisitions to over $200 million in just over 12 months.

Rivergate Place is a purpose-built regional headquarters and national training facility comprising 11,353sqm of gross lettable area on a 14,610sqm freehold site with 98 meters of Brisbane River Frontage.

The asset offers a weighted average lease expiry (WALE) of 3.6 years and is strategically positioned with immediate access to the Port of Brisbane, Gateway Motorway and Brisbane Airport.

It sits within the Australia TradeCoast, one of the country’s most tightly held industrial precincts, where land constraints, limited vacancy, and sustained tenant demand continue to drive rental and capital growth.  

Ben Somerville, Head of Capital Transactions at Clarence Property, said the acquisition reflected the group’s confidence in southeast Queensland’s industrial fundamentals and the strength of covenant-backed metro assets.

“In a climate where yields have softened and transaction volumes remain subdued, we’re seeing continued value in defensive, infrastructure-connected assets with strong tenant profiles and underlying land value,” said Mr Somerville.

“This is a high-specification facility underpinned by a globally recognised tenant that has been embedded in the site for over 17 years, in a location where assets of this calibre rarely come to market.” 

Constructed in 2008, the tilt-panel facility includes 2,213sqm of premium office space and 9,140sqm of warehousing, servicing Yamaha’s marine, mobility and national servicing operations.

Yamaha Motor Australia is a wholly owned subsidiary of Japan-based Yamaha Motor Co. Ltd, listed on the Tokyo Stock Exchange with a market capitalisation of more than $8 billion USD. The tenant has one five-year option remaining, with a ratchet clause in place at market review.

Simon Kennedy, CEO of Clarence Property, said Rivergate aligns with the group’s broader strategy to grow exposure to metro markets with embedded infrastructure and long-term value.

“Together with our recent acquisition at Metro Middle Park, this transaction takes our recent metro investments to more than $80 million in the last two months, reinforcing our belief in the resilience and growth potential of South East Queensland,” said Mr Kennedy.

“Rivergate represents a rare opportunity to secure a covenant-backed, income-generating industrial asset in a blue-chip precinct, with strong locational fundamentals, irreplaceable scale, and a clear replacement cost advantage.”

The property was marketed by Colliers and Modus Property, with the sale negotiated by Modus Property Group.

Jack Pershouse, Partner at Modus Property Group, said assets of this quality, underpinned by the covenant strength of Yamaha, are extremely scarce, particularly within the TradeCoast market.

“Clarence has a great track record within the immediate precinct, and we expect this acquisition to be a great addition to their diversified fund,” Mr Pershouse said.

David Gibson, Partner at Modus Property Group, said the property was a rare offering in one of Brisbane’s most highly regarded industrial precincts.

“69 Rivergate is a genuinely irreplaceable asset in a marine-oriented precinct that is highly suited to the operations of the occupier,” Mr Gibson said.

Clarence Property is a diversified property funds manager and developer with more than $860 million in assets under management. Through its flagship Diversified Fund, the group invests across commercial, retail, industrial and residential projects throughout South East Queensland and Northern New South Wales, with a focus on delivering consistent long-term returns for investors.