Industrial property under the spotlight as sales power up

Written by admin on 06/07/2018 Categories: 老域名

Charter Hall has reached a deal with The Reject Shop to develop a facility at the Drystone estate in Melbourne’s Laverton North.Investors have put industrial property under the spotlight with more than $2 billion of sales in the past quarter and more in the pipeline.

The upcoming deals include a range of portfolios such as JPMorgan’s $250 million sale and Charter Hall’s $435 million. Both are being reviewed by several prospective buyers.

In September, GIC and Frasers Property Australia’s huge warehouse portfolio was acquired by listed Singapore group Ascendas for $1.07 billion.

It has been suggested that DEXUS Property is also reviewing assets, worth about $350 million, that could be offered for sale in one line or separately – more likely next year – as part of its asset recycling.

The activity is boosted by a decline in vacant industrial stock in Sydney to a new series low this month.

Knight Frank’s latest Sydney industrial report says while an anticipated increase in leasing space is set to enter the market in 2016, the above average leasing activity means the market is relatively well placed to digest this stock.

Knight Frank’s director, NSW research, Nick Hoskins said Sydney’s industrial available space (more than 5000 square metres) declined 12 per cent in the October quarter to a series low of 502,337 square metres. This is the lowest level since the series began in 2011.

Underpinning the latest fall in vacant stock in the third quarter of 2015 was the fifth successive period of above average take-up. Under that trend, NSW continues to outperform the national average.

Knight Frank’s head of industrial, NSW, Tim Armstrong said in anticipation of the increased demand, several landlords who owned assets with a mid-2016 lease expiry had started marketing facilities with availability up to nine months away.

Mr Armstrong said the low available stock continued to reduce some of the natural churn in the market.

“Only 87,287 square metres of new vacancies entered the market during the quarter compared to the long-run average of 134,174 square metres,” he said.

One of the latest deals was by the DEXUS Wholesale Property Fund (DWPF). It exchanged conditional contracts for the sale of the Acacia Gate industrial estate in Brisbane for $21.6 million. This follows the Sydney sale of 2 Costello Place, Seven Hills, last week for $14.9 million and the recent sale of the Melbourne International Airfreight Centre for $23.9 million.

DWPF fund manager Penny Ransom said the three divestments reflected a strategy of recycling capital out of non-core assets at attractive points in the cycle.

“We remain focused on delivering on our development pipeline and on acquisition opportunities where we can add value over the long term,” Ms Ransom said.

The listed DEXUS Property also entered into an agreement to sell 57-65 Templar Road in Erskine Park, NSW – said to be to M&G Real Estate – for about $50 million.

Charter Hall has also continued its focus on growing its industrial and logistics platform, with a deal with The Reject Shop to develop a new warehouse and distribution facility at the Drystone estate in Melbourne’s industrial suburb of Laverton North.

The Reject Shop facility will consist of a warehouse and office facility of 37,700 square metres on a 89,000-square-metre site. The new development, which is expected to be completed by September 2016, includes an initial 10-year lease term. It will be valued at more than $40 million.

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