Asia’s leading wool manufacturer PGF Insulation has secured new sites in Brisbane and Melbourne as it continues its Australian expansion plans. 

The manufacturing company required expansion space for storage and distribution of their building materials. CBRE negotiated the two deals with a combined rental space of 9,172 sqm and a combined rent of $1,106,496 per annum. 
 
In Melbourne, PGF Insulation is relocating from Melbourne’s West to Campbellfield after securing the lease of a 5,560 sqm speculative industrial development at Campbellfield Industrial Park by Centennial.

In Brisbane, the company has leased a 3,612sqm building from Stockland in Brisbane’s south. 

CBRE’s Joe Brzezek and Daniel Eramo brokered the Melbourne lease on behalf of Centennial. PGF has pre-committed to 40 Decco Drive on a five-year lease.

“In this market, we are seeing landlords achieve premium rents from tenants with time permitting requirements, Centennial has been able to capitalise on the current low vacancy environment by securing a quality tenant above the asking rental price,” Mr Brzezek said.

Mr Eramo added, “With the low vacancy industrial environment, we have seen significant rental growth in Melbourne’s north over the last 12 months and forecast this to continue throughout 2023.”

“This transaction is an example of occupiers who will now consider both Melbourne’s north and west due to supply constraints.”  

Centennial purchased the site for $13,295,000 in 2020 through a deal brokered by CBRE and has since developed the excess land, adding additional warehousing to create a circa $40m estate. This transaction is Centennial’s second lease after securing Scania prior to settlement in 2021.

CBRE’s Jack Hardy brokered the Brisbane lease on behalf of Stockland. PGF has pre-committed to the Willawong Distribution Centre site on a five-year lease. 

“The Brisbane leasing market has seen strong rent growth amid limited supply due to rising construction costs and record low vacancy,” Mr Hardy said. 

“PGF Insulation acted quickly to acquire the industrial facility to benefit from its location and easy access to the Acacia Ridge Rail Yards, Beaudesert Road and the Logan Motorway.” 

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