Brisbane industrial market soars with a record-breaking three $100m-plus sales this year
National investment sales have increased 18pc since 2018, says JLL
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.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com