This article is from the Australian Property Journal archive
ALTIS Property Partners and Arrow Capital Partners have zeroed in on two industrial and logistics investments in Brisbane for $101.6 million, acquiring it from a Singaporean investor taking advantage of the hot market.
The property was acquired from Singapore’s Ascendas Reit which has divested three industrial and logistics investments in Brisbane and Melbourne for $125.1 million, reflecting a 16.8% premium to valuations.
Altis and Arrow have bought 82 Noosa Street and 62 Stradbroke Street whilst China Tube Pty Ltd and Haelram Pty Ltd have bought the smaller 1314 Ferntree Gully Road in Melbourne’s eastern suburbs for $23.5 million.
The trust said the sales were part of its proactive asset management strategy to improve the quality of its Australian portfolio.
82 Noosa Street and 62 Stradbroke Street are located in Heathwood, approximately 20 kilometres south-west of Brisbane’s CBD. The trust acquired the assets in 2015 from GIC and Frasers Property Australia as part of a $1.073 billion portfolio acquisition.
82 Noosa Street has a lettable floor area of 38,000 sqm across two standalone warehouses, and 62 Stradbroke Street comprises two standalone warehouses linked by a central canopy and has a lettable area of 24,555 sqm.
The 1314 Ferntree Gully Road property was acquired in June 2018. Located approximately 30 kilometres east of the Melbourne CBD. The property comprises three levels of office, a low-bay 6 metres clearance warehouse and an ultra-high bay 15 to 16 metres clearance warehouse that is fully racked. It has a lettable floor area of 16,134 sqm.
Following the sales, Ascendas Reit will own 95 properties in Singapore, 34 properties in Australia, 30 properties in the United States and 49 properties in the United Kingdom/Europe.
The acquisitions will further Altis’ exposure in the industrial property market and comes after it started construction on Australia’s first major industrial and logistics community.
Demand for industrial assets continues to grow, Charter Hall recently secured a 90-year leasehold for the $300 million Light Horse Business Hub, which came hot on the heels of the $106 million purchase of a pharmaceuticals manufacturing facility and the acquisition of 25 cold storage and food distribution centres in a $270 million sale and leaseback deal with PFD Food Services.
Charter Hall has been a major player in the market rush for industrial and logistics assets, having now acquired more than $2.6 billion in industrial and logistics facilities so far in the financial year. Also recently, its Direct Industrial Fund No. 4 snapped up a pair of Patties Foods sites Victoria for $141 million in another sale and leaseback deal.
It comes as tenant demand for space set a new record in the March quarter.
Meanwhile the global pandemic has made Australia even more attractive than before. A recent report by ANREV/INREV/NCREIF found investment managers raised $3.86 billion to invest down under in 2020 – $800 million more than 2019.
Real Capital Analytics data shows offshore buyers represented 42% of all deals in the first quarter, reflecting a 83% year-on-year growth.
