Logistics sheds are proving the new black for property buyers, with a new green-star rated warehouse leasing for $1.1 million and a Singapore fund’s $177 million buy pump-priming industrial exercise for the new yr.
Global property participant Blackstone has offloaded 9 sheds throughout Australia’s japanese seaboard, the majority in Victoria, to Singapore-listed Cache Logistics Trust in a $177.6 million deal.
The buy of six warehouses in Victoria, one in NSW and two in Queensland was struck on a yield of 6.four per cent and can virtually double Cache’s Australian property holdings from $195.9 million to $373.5 million.
The shed’s tenants embrace multinational logistics corporations DHL Supply Chain, Toll Transport and Melbourne Transport and Warehousing, and Mars Australia, Penske Power Systems, Ajax Fasteners, Kadac, Ball & Doggett, Kitchen Innovations, Carter Holt Harvey Wood Products, Cummins South Pacific and AJ Baker & Sons.
Colliers International’s Tony Iuliano and Adrian Rowse dealt with the transaction.
Cache chief government Daniel Cerf stated the group was now properly positioned to “ride on foreseeable growth in the industrial sector in Australia”.
“The yield-accretive transaction not only provides income and geographical diversification to Cache but further enhances its base of high-quality logistics tenants and end users,” he stated.
Three of the Melbourne properties are within the south-east, two are within the north in Campbellfield and one within the west in Laverton North.
ASX-listed GPT has additionally been out there, buying 4 industrial properties leased to print business IVE in Sunshine for $74 million on a yield round 6 per cent.
Knight Frank’s Joel Davy and Tony Tripodi stated logistics companies have been trying to improve to energy-efficient sheds to scale back working prices.
The pair lately brokered a $1.1 million lease on behalf of Frasers Property Group with CTI Logistics to maneuver right into a new speculative-built 5-Star Green Star warehouse and distribution centre at 33 Archer Road in Truganina.
Logistics big CEVA moved into an analogous 5-star Green Star constructing in the identical property final yr.
“Speculative stock take-up is on the rise, with the fourth quarter of 2017 almost double the first quarter of the year at 32,000 square metres,” Mr Davy stated.
“Large warehouses operate 24 hours a day and with electricity costs getting higher tenants are spending a lot more on outgoings.”
The provide of industrial land in Melbourne was shrinking, which might add to demand this yr, Mr Iuliano stated.
“Demand is eclipsing 2007 levels. Retail lots are limited and zoned englobo land isn’t available,” he stated.
A complete of 700,000 sq. metres was pre-leased in 2017.
That was more likely to push up rents in some elements of Victoria, as emptiness was presently very low at lower than four per cent, he stated.
Another listed participant, Mirvac, has moved to pay attention its industrial portfolio at its Calibre property in Sydney’s Eastern Creek.
“Our industrial portfolio is now 100 per cent concentrated to Sydney, following the sale of two Melbourne assets to our industrial partnership with Morgan Stanley,” chief government Susan Lloyd-Hurwitz stated when reporting the corporate’s outcomes on Thursday.
“We believe our exposure to Sydney will continue to deliver secure, stable income to the group, supported by strong demand from wholesale and retail tenants,” Ms Lloyd-Hurwitz stated.