Brisbane industrial market soars with a record-breaking three $100m-plus sales this year

BRISBANE, September 2019 – Queensland’s industrial investment market is beginning to boom with an 18% rise in national investment sales since last year and an industry first record of three sales over $100 million.

“In 2018 there was $3.2 billion in national investment sales above $10 million in Australia across 109 sales, and Queensland accounted for 15% of these sales. Since the start of this year Queensland’s figure has risen to account for 33% of national investment sales, more than doubling our presence in the market,” said Gary Hyland, JLL Senior Director of Industrial in Queensland.

“2019 is looking to be a record-breaking year for the Brisbane industrial investment market with an industry-first of three sales above $100 million already.”

The three sales were:

- 40 Schneider Road, Eagle Farm which sold for $102,500,000 and is leased to the Brisbane City Council with a 19.5-year WALE;
- 99 Sandstone Place, Parkinson with a 50% interest selling for $134,200,000. This major refrigerated distribution is leased to Coles with 13.4-year WALE and,
- 105-137 Magnesium Drive Crestmead which sold for $183,600,000 and is leased to Metcash with a 10-year WALE.

Tony Iuliano, JLL’s Australian Head of Capital Markets & Logistics said there had been approximately $1.9 billion in national sales above $10 million since the start of 2019 and Queensland has accounted for 33% of these sales showing significant growth since last year.

“And these figures look set to rise with further $240 million of assets either currently on the market, in due diligence or about to be offered for sale. Some 80% of the investment sales above $10 million have been sold to institutional buyers.”

Mr Hyland said: “Institutional groups are seeing value in the Brisbane market compared to other states. Buyers are seeking well located logistics facilities, a number of larger assets offering WALE and scale have transacted at initial yields in the low 5% range.

“With two strong years of leasing take-up above 500,000sqm, limited land supply and increased infrastructure spending, we are expecting investment activity to continue in the Brisbane industrial investment market.”