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News release

Australia

Major industrial logistics portfolio covering 90,000 square metres in NSW and QLD being offered for sale.


​​AUSTRALIA, 27 AUGUST 2014 –Two brand new, super prime logistics facilities have been put on the market for sale.  With 15 year leases to the Super Retail Group and located in key logistics locations, the assets are highly attractive with the Australian industrial sector currently in high demand.

The facilities, at Lenore Drive in Erskine Park, New South Wales and Grifffin Court in Brendale, Queensland have been developed over the last 12 months.  

The two properties, leased for 15 years, with a total building area of over 90,000 square metres, additional land for further development, and further opportunity for expansion are unique in the market currently. 

The properties are being marketed for sale in one-line by Michael Fenton from JLL and transaction adviser Hugh Williams from Pitt Street Real Estate Partners.

Mr Fenton, JLL’s Australian Head of Industrial said, “This portfolio has already received strong interest from both domestic and international groups due to the scale of the offering, long term leases and new state of the art facilities in prime industrial locations.  

“Whilst there have been a number of industrial portfolio offerings in 2014, none have the scale and quality of the Super Retail Group assets, which includes brands such as Rebel, Ray’s Outdoors and Amart Sports.  Super Retail Group is one of Australasia’s Top 10 retailers, demonstrating the strength of the lease covenant. These facilities are considered critical infrastructure for Super Retail Group, streamlining their supply chain and enhancing their very strong business position.

“We continue to see investors looking to acquire scale in the industrial sector and therefore expect this portfolio to be highly contested. Despite very strong demand for prime assets with core characteristics in key locations linked to infrastructure, the market has been starved of opportunities in these locations. Less than a handful of properties have traded in the key suburbs of Sydney’s outer west.

“This portfolio opportunity is likely to be the only one of its kind, in the foreseeable future. We expect investors looking to deploy capital into this part of the world to sharpen their pricing and bid aggressively for these assets. From a global perspective, investors have noted the returns in Australian Logistics assets still offer very strong and sustainable returns, relative to other major markets,” said Mr Fenton. 

JLL’s latest quarterly research statistics, released last month, showed investors remain attracted to the stable fundamentals of the industrial sector, with transaction volumes in the first half of 2014 up 35% on the same period last year. Yields have firmed sharply in the last 12 months as investors look to place allocated capital into the market. JLL estimates that allocated capital to the sector is likely to typically exceed available product by a ratio of 5:1. 

A significant driver of industrial property demand in Australia is the transport and storage sector.  The key drivers of industrial occupier demand will remain Australia’s consumption driven economy with highly concentrated urban centres.  The logistics and freight sector will continue to be supported by strong population growth, rising import volumes and sustained consumption growth. 

An Expressions of Interest (EOI) campaign for the portfolio closes on 18 September 2014.