Wednesday, 13th November 2019
Eastern Industrial Vacancy Rates (AFR)
· Eastern industrial vacancy rates have fallen to five-year lows in Sydney, Melbourne and Brisbane, according to the Singapore-listed Frasers Logistics & Industrial Trust (FLT).
· The trust owns 62 Australian properties worth $2.1 billion – of which 59 are on the east coast.
· In June FLT purchased three industrial properties on the east coast for $125.5 million, including the 32,894m² FDM Warehousing facility in the Eastern Creek Business Park in Sydney for $65.5 million ($1,991.24/m²).
· "The strong demand for industrial space is largely attributable to strong population growth, public infrastructure spending and growth in the e-commerce sector” FLT said.
ESR and China Merchants Capital Investment Partnership (AFR)
· Logistics focused Real Estate Group ESR, have launched a $350 million logistics real estate fund with asset manager China Merchants Capital Investment.
· ESR will seed the mandate, the ESR Australia Logistics Trust, with an initial 11 properties from its balance sheet, worth $175 million, with plans to grow the mandate to $350 million in the next 12 months.
· The movement of assets to the fund was part of strategy and the mandate's expectations for strong returns from the logistics sector as e-commerce grows.
Murarrie Office/Warehouse Lease (AFR)
· Printing business Paper Handling Equipment have leased a 900m² office/warehouse with a showroom at 33 Miller Street, Murarrie QLD 41172 on a five-year term.
· The property with parking and a 625m² concrete tilt-panel warehouse, was leased at a net annual rent of $103,000 ($114.44/m²).
Boronia Neighbourhood Centre Sold (AFR)
· ASX-listed Coles Group have sold a neighbourhood retail centre within Boronia Mall at Floriston Road & Chandler Road, Boronia VIC 3155 for $35 million to a private investor.
· The 10,000m² supermarket and adjoining Kmart store were listed in September and sold with a new 12-year lease to Coles Supermarket and an existing Kmart lease expiring in 2025, resulting in an estimated net income of $2.05 million.
· The Coles and Kmart stores form part of the Boronia Mall and are adjacent to the Boronia Central retail centre.