Listed Singaporean property REIT Mapletree Logistics Trust has bought 36 hectares of industrial land on Brisbane’s outskirts in a deal worth about $95 million as institutional investors look beyond Sydney for better value.
It is understood the trust has agreed to terms with the vendor Pointcorp for the sale of the site, which will be part of the proposed 157 hectare Crestmead Logistics Estate, south of the Logan Motorway corridor in Brisbane.
Pointcorp, a Brisbane developer which has been amalgamating the land over the past two years, will start developing the estate in January. Mapletree will then be able to develop its own warehouses on the site with a capacity for about 200,000 square metres of space.
The land is just south of the 90,000-square-metre Metcash property that Charter Hall purchased from Blackstone earlier in the year for $183.6 million and is transacting on a yield of 5.15 per cent. The relatively tight yield is indicative of the increased demand from institutional investors for industrial property .
Pointcorp director Chris Vitale confirmed the group had contracted to sell 36 hectares unconditionally but would not disclose the price or buyer.
Selling agents Michael Callow and Scott Dalton of Cushman & Wakefield and Colliers International’s Matthew Frazer-Ryan also declined to comment on the deal.
However, Mr Callow did say there was a trend of institutional funds restocking their land supplies in Melbourne and Brisbane to facilitate large-scale warehouse and logistics parks, given the Sydney market was tight and overpriced.
“Melbourne land prices have doubled in the last 12 months based on strong tenant demand,” Mr Callow said. “It’s having the best run of all capital cities and Brisbane is likely to follow in 2020.”
Based on some recent comparable transactions, industrial land has been selling for anywhere between $600 and $700 per square metre on Sydney’s fringes, compared to between $250 and $350 per square metre in Brisbane’s western corridor precinct.
The Charter Hall-managed Core Logistics Partnership recently announced its acquisition of a 3.9 hectare site at Glendenning in Sydney’s west for $26 million, at about $680 per square metre.
Mapletree Logistics Trust has been an active player in the local logistics property market of late.
In September, the REIT bought a yet-to-be-built untenanted 15,000 square metres warehouse in Melbourne’s west in a fund-through deal worth $18 million and last year the trust paid $102 million for a Coles distribution centre in Heathwood in Brisbane’s south-west from US-based institutional investor Blackstone.
Inner-Brisbane commercial building sold on tight yield during COVID-19
A new commercial building situated in a prominent corner position in the inner-Brisbane suburb of Ashgrove has sold in a deal representing a tight yield for Queensland.
The fully-leased medical and retail property at 9 Ashgrove Road, which also has frontage to Crawford street, was sold for $8.88 million at a passing yield of five per cent, with a passing net income of $444,300 per year.
It was purchased by GDA Diversified Property Trust having been listed by Eloper Group in a deal negotiated by Blake Goddard and Matt Barker of Knight Frank in conjunction with Michael Hedger, Darren Collins and Jack Morrison of CBRE.
Completed in May 2019, the Ashgrove building offers 618 sqm of medical/retail accommodation over two levels on an 800 sqm site with secure basement car parking for 26 vehicles.
It is 100 percent leased to three tenants including the Bank of Queensland, Ashgrove GP clinic and RecoverWise Physic, with 75 per cent of the income generated via the medical tenants, which are well- established in the precinct.
Mr Goddard said the campaign generated a suburban record for price per square metre of net lettable area of $14,369 and yield for an asset of this nature.
Mr Collins said the best interest came from the passive investors including numerous parties who work in the medical industry and were attracted to the strong lease covenants on this 100 per cent leased asset with an 8.5 year WALE (by income).
It is set just 4.5km from the Brisbane CBD.
This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.
The suburbs where it’s cheaper to buy than rent
Olympics, Billion-Dollar Projects Brighten Brisbane Outlook
Hosting the 2032 Olympic Games, along with a swathe of major projects and infrastructure, could play a critical role in Brisbane’s recovery from the coronavirus pandemic.
With the largest local authority in the southern hemisphere, Brisbane is well-positioned post-pandemic with $20 billion worth of major development on the way and $49.5 billion committed to transport infrastructure.
Major development projects include the $5.4 billion Cross River Rail, $3 billion Queen’s Wharf casino and the Brisbane Airport redevelopment.
The region, home to one in seven Australians, has put its hand up to host the 2032 games—the first location to announce it would bid for the $5 billion-plus games, under new rules that allow a region, rather than a city, to host the event.
“There is already a need for jobs and growth in the Queensland economy arising from the impact of Covid-19,” Australian Olympic Committee president John Coates said.
“Our partner three levels of government recognise a potential 2032 Olympic and Paralympic Games as a critical part of the state and nation’s economic recovery in the short term, quite apart from all of the long-term health, wellbeing, economic and sporting legacies.”
Brisbane deputy mayor Krista Adams, Brisbane Marketing chief executive Brett Fraser, ASM Global Asia Pacific chief executive Harvey Lister and Brisbane Marketing chairman Paul Spiro will discuss the key projects and initiatives driving Brisbane post-pandemic, at The Urban Developer’s upcoming Brisbane Reimagined webinar.
Panellists will touch on major economic priorities and their impact on the property sector as well as recent changes to the City Plan and the impact on the property sector.
This event is a must for anyone invested or considering investing in the greater Brisbane region.
This article is republished from theurbandeveloper.com under a Creative Commons license. Read the original article.
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