Queensland infrastructure boom a positive for industrial investors

Queensland is set to benefit from $45.8 billion worth of infrastructure investment over the next four years, placing commercial investors in a prime position to benefit from rising economic activity and improved transport efficiencies.

The Palasczuk Government’s State Infrastructure Plan (SIP) has outlined $11.6 billion of infrastructure investment to be rolled out in 2018-19, a step it claims will support up to 38,000 jobs across the Sunshine State.

This is just a fraction of the projected infrastructure spend over the coming years, with the Queensland Transport Roads and Investment Program 2018-2019 to 2021-22 outlining a total  $21.7 billion to be dedicated towards improving the State’s transport and road infrastructure over the next four-year period, amongst other projects centred around the capital city.

Key projects in the pipeline for Brisbane include the $5.4 billion Cross River Rail Project in Brisbane’s South-East, the $3.6 billion Queen’s Wharf Project, a $100 million dollar upgrade at the GABBA, and the development of the $2 billion Brisbane Live Arena.

Whilst these facilities will prove a major drawcard for tourists, increased infrastructure spending will help lay the foundations for job growth in Queensland, with the projects set to facilitate the creation of tens of thousands of employment opportunities in the State’s engineering construction sector.

These rising construction levels could prove positive news for commercial investors, with accompanying demand for materials inevitably yielding a positive impact on activity levels in the State’s industrial market.

Mair Property Fund’s Peter Melling says the new infrastructure projects are likely to have a key knock-on effect on demand for industrial properties.

“As construction levels increase and the need for material grows, this will in turn trigger higher demand for industrial assets from tenants, which will likely translate into lower vacancy rates and an increase in industrial rents,” he said.

Plans for new infrastructure are set to play a fundamental role in increasing Queensland’s transport efficiencies, enabling industrial businesses to expand and improve their operations.

Mr Melling says this has formed a key part of MPF’s decision to invest in Queensland.

“Combined with strong levels of demand for industrial properties in Brisbane’s South-East, the projected rise in transport efficiencies has been a key influencing factor in our decision to explore opportunities in Queensland’s industrial sector”

“Over the next few years, we expect to see businesses reinvest and expand their operations off the back of increased efficiencies, which should place savvy investors in a strong position to profit from increased demand for high-quality industrial assets,” he said.

Mair Property Funds has recently secured two leased assets in South East Queensland as part of MPF Diversified Fund No.2 – a new industrial facility in Crestmead, and a medical laboratory located in Virginia.

If you would like to register your interest for our latest Fund, please visit http://www.mair.com.au/diversified/

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