This article is from the Australian Property Journal archive
AUSTRALIAN fund manager Trilogy Funds is adding another property to its industrial portfolio, this time a warehouse and showroom on 2.7 hectares of land in Moreton Bay.
The asset will sit in the Trilogy Industrial Property Trust, taking the trust to 15 industrial properties across Queensland, NSW, Victoria, South Australia, and the Northern Territory, with a fund size of over $280 million.
Trilogy Funds executive director lending and property assets, Clinton Arentz noted the property’s “prime location…in one of South East Queensland’s premier industrial business precincts”, and its size and strong tenant covenant.
The property is 100% leased to a single tenant – “a market leader with a 70-year track record in their industry”, Arentz said – who has occupied the site for more than 20 years.
Arentz said the transaction’s yields and rental increases reflected the ongoing strength of the industrial market in Queensland.
The property will have a weighted average lease expiry of around 5.5 years.
“We are continuing to see strong demand for large industrial properties in the current south-east Queensland market, with less than 1% vacancy for buildings over 3,000 sqm,” Arentz said.
“Certainly, industrial property continues to be an attractive investment proposition given long term structural themes playing out in commercial property markets globally, including ongoing robust demand and modest supply.
“The industrial property sector is still experiencing positive post-pandemic impacts, as increased e-commerce penetration created additional demand for warehouse space.”
“This includes ongoing annual rental growth, higher capitalisation rates, low vacancy rates and land-rich assets that provide potential for solid returns, capital appreciation and expansion projects to add value across the industrial sector.
