This article is from the Australian Property Journal archive
DESPITE short-term headwinds, Singapore’s Mapletree Logistics Trust is confident in Brisbane’s growing logistics market by snapping up a newly built warehouse leased to Decina Bathroomware.
The trust has paid $21.25 million on an initial yield of 5.4%. The 115 Rudd St Inala property is located 18km from Brisbane’s CBD, 35km from Brisbane Airport and 40km from the Port of Brisbane.
Completed last month, the A grade property comprises a single-storey warehouse with annexed office and showroom, providing a total gross floor area of about 9,050 sqm on a 18,801 sqm site. It was sold with a 10-year lease to Decina Bathroomware, Australia’s largest specialist bath, spa bath and shower manufacturer.
This is MLT’s second logistics facility in Brisbane and will expand the trust’s footprint in Australia to 11 assets with a combined GFA of 277,115 sqm. Upon completion, MLT’s portfolio will comprise 146 properties with a total value of assets under management of S$8.97 billion.
MLT said Brisbane is a growing logistics market supported by positive long-term economic fundamentals and resilient domestic consumption.
“Despite the short-term headwinds due to the COVID-19 situation, domestic consumption is expected to remain resilient underpinned by structural demand drivers which include population growth and an increasing proportion of working age population.
“Going forward, the Brisbane logistics market is expected to be a beneficiary of several major infrastructure developments which include Brisbane Airport’s second runway, improvement works to Brisbane Port and a new inland freight rail line between Melbourne and Brisbane,” the trust said.
The off-market transaction was handled by Paul Burns of Fitzroys and Justin Clarke of McGees Property.
“Securely-leased investments have a long and growing queue of buyers. There is a distinct possibility that securely-leased investments will in fact attract firming yields as property investors become more narrow in their mandate to buy passive property,” Burns said. “This growth path for property investors has been laid out more clearly in recent months as demand for more efficient delivery and for a bigger range of products has fast-tracked the requirements for logistics and distribution systems and facilities. After a period of growth, the industrial and logistics sector has proven to be not just resilient in the COVID-19 environment, but a standout performer, and is expected to go from strength to strength.”
Burns added that industrial and logistics properties are among the most sought-after real estate assets, and institutional investors and fund managers have heightened their focus on sector.
Clarke said the negotiations had navigated COVID-19, meaning the transaction will serve as a precedent in the current market.
“Brisbane’s logistics market will benefit from several major infrastructure developments, which include a second runway at Brisbane Airport, upgrades to Brisbane Port and the $10 billion Inland Rail freight line running between Melbourne and Brisbane which has been fast tracked by the Federal Government,” he said.
