This article is from the Australian Property Journal archive
MELBOURNE chalked up approximately $2 billion worth of industrial property deals in the 12 months to March, underscoring the resilience according to Cushman & Wakefield.
It is level with $2 billion figure recorded in the previous year and up slightly on the five-year average of $1.9 billion.
Furthermore, over the period, 119 properties were sold up from the previous year’s total of 109, and up on the five-year average of 95.
Cushman & Wakefield national director of research Tony Crabb said the March quarter was particularly good with $300 million transacted.
This is about average for the March quarter where the last five have averaged $330 million. April this year has seen over $120 million transacted which speaks to the resilience of the sector in the face of the pandemic.
Amongst the larger transactions over the past 12 months were Dexus sale of 24% of one of their industrial portfolios to GIC for circa $174 million for the Melbourne portion, the Viridian Glass sale and leaseback to Charter Hall for $100 million and the Logos purchase of 30 Logistics Drive for $69.67 million.
Land continued to find buyers in a competitive environment where shortages are looming in the South-East.
Cushman & Wakefield recorded over $600 million of land sales involving over 3.2 million sqm of land. This included the $79.75 million sale of 412,000 sqm in Taylors Rd, Dandenong South, the $35.8 million sale of 150,000 sqm in Nitron Drive, Truganina and more recently the sale of the 136,000 sqm of Qube Logistics land in Francis St, Brooklyn for $65 million.
National industrial director David Norman said there is currently over $1 billion of assets in due diligence including the Aldi portfolio. Capital is still seeking core assets even given the constraints of the pandemic.
