This article is from the Australian Property Journal archive
APPETITE for industrial and logistics assets shows no signs of slowing with Singapore’s Mapletree Logistics Trust snapping up a Brisbane distribution centre for $114 million on a sharp yield of 4.9%.
The REIT has acquired the 338 Bradman St Acacia Ridge property from Blackstone which has pocketed over $200 million this week after earlier selling an Acacia Ridge industrial site to ESR for $90 million.
Set on a 110,000 sqm land area, the 55,009 sqm facility is fully leased to three tenants and anchored by Woolworths which represents 84% of GFA, with a weighted average lease expiry of 5.3 years.
This is MLT’s third logistics facility in Brisbane and increases its total Australian portfolio to 13 properties with over 347,287 sqm of leasable space.
MLT said growing e-commerce and domestic consumption continues to underpin demand for warehouse space, which has been spurred by the COVID-19 pandemic.
“Demand for logistics space in Brisbane is underpinned by several structural demand drivers, including a fast growing e-commerce sector and resilient domestic consumption. In Queensland, e-commerce logistics distribution and warehousing has shown strong growth of 5.2% annually, the highest of any state nationally.
“The COVID-19 pandemic has also spurred a major uptick in online shopping, particularly in the food, beverage and grocery sector. Consequently, surging sales of major supermarket players as well as consumer demand for fast delivery are translating to higher demand for prime logistics space with good connectivity,” MLT said.
This is the second major industrial investment sale in Brisbane this week after the ESR Australia Development Partnership bought 1502 Beaudesert Rd Acacia Ridge from Blackstone for $90 million.
These transactions reaffirm the appetite for industrial properties during the coronavirus. Recently Cushman & Wakefield research shows industrial transactions has surpassed offices for the first time in almost 10 years.
Recently CSR sold its Horsley Park facility for $84.3 million; Hastings Deering sold an industrial development land in Brisbane for $41.5 million, and Qube Holdings is in talk to sell its Moorebank Logistics Park for $2 billion.
Other recent deals include Dexus’ sale of six assets into its joint venture vehicle with GIC, the Dexus Australia Logistics Trust, for $270 million, and Charter Hall’s acquisition of the OIA Glass portfolio for $214.6 million and the automotive logistics park in Minto from Qube for $207 million.
Charter Hall also acquired four ALDI logistics properties in partnership with Allianz for $648 million, as well as the Winc national distribution centre in Erskine Park for $115 million.
In August active player Logos paid $50 million for the former Woolworths distribution centre in Melbourne; acquired an Epping logistics asset with an end value of $70 million, and bought distribution centres in Sydney and Logan City for $172 million from healthcare company Sigma, with the backing of the New South Wales government’s financial management and investment arm, TCorp.
In the same month Centuria Industrial REIT snapped up Telstra’s data centre complex in south east Melbourne for $416.7 million.
But it is not only local institutional players actively seeking industrial assets, global real estate investment manager DWS picked up a 50% stake in a Coorparoo chilled warehouse facility for a cool $152.5 million last month, while Singapore’s Mapletree Logistics Trust paid $21.25 million for a newly built warehouse leased to Decina Bathroomware in Inala.
