capital markets investment review 2016 - industrial

Accelerating success.

2015/16

CAPITAL MARKETS INVESTMENT REVIEW

I N D U S T R I A L

03 INTRODUCTION

04 THE DEMAND ENVIRONMENT

08 YEAR IN REVIEW

13 TRANSACTION TRENDS

15 INVESTMENT OUTLOOK

16 VALUATION OUTLOOK

18 INDUSTRIAL INVESTMENT MAP

20 MAJOR TRANSACTIONS OVERVIEW

26 CASE STUDIES 26 GIC LOGISTICS PORTFOLIO 27 PART PORTFOLIO - ALTIS AREEPII 28 CHARTER HALL PORTFOLIO 29 GOODMAN PORTFOLIO

30 NZ INDUSTRIAL OVERVIEW

32 DETAILED TRANSACTION LIST

46 INDUSTRIAL EXPERTS

CONTENTS

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

2

INDUSTRIAL EDITION

INTRODUCTION

In an era of historically low interest rates and yields: the comparatively higher returns offered by Australian industrial and logistics assets lured steady investment volumes. Indeed the demand for core and core plus assets imposed downward pressure on transaction yields. Offshore investors increased their share of activity in the financial year, representing 29 per cent of the investment volume. Driven by a mandate to match or offset liabilities, investors from the Asia-Pacific region accounted for 66 per cent of this offshore investment. This was unsurprising given the outperforming risk-adjusted returns offered by Australian industrial and logistics assets.

In a bid to reduce transaction costs and achieve instant scale, multi-asset acquisitions have remained at the fore. Ascendas became one of the region’s largest industrial and logistics owners with the purchase of the GIC logistics portfolio. This was the largest industrial transaction seen in the Asia-Pacific. It comprised of 26 assets which sold for a total of $1.073 billion, at a fully-leased yield of 6.1 per cent. The consolidation theme was substantial in the FYE2016, with portfolio sales accounting for over 33 per cent of sales in the sector.

Investment volumes were underscored by a confidence in the domestic economic fundamentals, robust leasing conditions, and a substantial infrastructure pipeline. Over $99 billion of public spending has been committed to transportation infrastructure projects in the forthcoming four years. In the sector where real estate and infrastructure meet, these new projects will have a profound impact on the value of existing assets; while unlocking new markets.

Meanwhile, Australia’s transition to a service based economy has taken strides in the past two years. The higher utilisation of labour in a service industry will undoubtedly benefit the logistics sector. Among other factors, the anticipated softer local dollar will galvanise inbound tourism, education and export quantities. Online spending continued to climb in line with the increased penetration of smartphones, tablets and other digital platforms too. Although recent retail spending growth was somewhat truncated by lower fuel prices and the intensified competition between supermarkets; upside influences are expected from a vastly improved labour market and accommodative interest rate. Most significantly, though, the recent strength in GDP growth results have caused an upward revision in growth forecasts.

We welcome you to this year’s Capital Markets Industrial Investment Review and look forward to assisting you with your Industrial and Logistics requirements.

MALCOM TYSON MANAGING DIRECTOR INDUSTRIAL

SAS LIYANAGE ANALYST RESEARCH

ANTHONY MYLOTT NATIONAL DIRECTOR INDUSTRIAL VALUATION & ADVISORY SERVICES

It was another phenomenal year in investment volumes for the Industrial and Logistics sector. Following on from the the tide of investment materialising in early 2014, over $7.64 billion in sales occurred nationally over the financial year ending (FYE) 2016. In this period over 424 assets sold. Sales in the last two years have been over twice the 10-year-average of $3.7 billion per annum. Somewhat symptomatic of the intensity of demand and the weighting towards prime assets traded, the average transactional cap rate firmed by 64bps; occurring at 7.32 per cent in the financial year.

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

3

In recent years the Australian economy ran an asymmetric economic course against its major foreign counterparts. By comparison, Australia’s economic growth has followed a relatively robust path in past decade.

This divergent growth path underlies its appeal. Investors look to Australian assets as a conduit to offset or match liabilities. In a world of low rates and returns: Australia's industrial and logistics assets offered a prepossessing proposition.

Australian industrial assets provided return starved investors with an excelling return. In the past three years, prime industrial assets have yielded a total annual return of 13.2 per cent - comparatively higher than prime office and prime retail assets: with respective annual returns of 11.7 per cent and 10.8 per cent.

THE DEMAND ENVIRONMENT

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Inve

stm

ent V

olum

es ($

Bill

ions

)

Offshore buyers

Domestic O�shore Undisclosed

Source: Colliers Edge / RCA

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Grow

th (%

)

Real GDP Growth (%)

United States Japan Eurozone United Kingdom Australia

Source: Colliers Edge / Deloitte Access Economics

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Singapore Hong Kong London (Heathrow)

Vancouver, BC

San Francisco

Tokyo Los Angeles Beijing Sydney Melbourne Brisbane Perth Adelaide

Prim

e Yi

elds

(%)

/ Go

vern

men

t Bon

d 10

y (%

)

Gap to 10 year bond rate

Initial Yield

Source: Colliers Edge / Trading Economics / RBA

10 Year Bond Rate

-10

-5

0

5

10

15

20

25

Jun-

06

Dec-

06

Jun-

07

Dec-

07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

Jun-

10

Dec-

10

Jun-

11

Dec-

11

Jun-

12

Dec-

12

Jun-

13

Dec-

13

Jun-

14

Dec-

14

Jun-

15

Dec-

15

Tota

l ret

un (%

pa)

Total return by sector (rolling annual %pa)

Retail O�ce Industrial

Source: Colliers Edge / MSCI - IPD Australia Quarterly Digest March 2016

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Inve

stm

ent V

olum

es ($

Bill

ions

)

Offshore buyers



-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Grow

th (%

)

Real GDP Growth (%)



-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%


Vancouver, BC

San Francisco


Prim

e Yi

elds

(%)

/ Go

vern

men

t Bon

d 10

y (%

)


Initial Yield


10 Year Bond Rate

-10

-5

0

5

10

15

20

25

Jun-

06

Dec-

06

Jun-

07

Dec-

07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

Jun-

10

Dec-

10

Jun-

11

Dec-

11

Jun-

12

Dec-

12

Jun-

13

Dec-

13

Jun-

14

Dec-

14

Jun-

15

Dec-

15

Tota

l ret

un (%

pa)




$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Inve

stm

ent V

olum

es ($

Bill

ions

)

Offshore buyers



-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Grow

th (%

)

Real GDP Growth (%)



-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%


Vancouver, BC

San Francisco


Prim

e Yi

elds

(%)

/ Go

vern

men

t Bon

d 10

y (%

)


Initial Yield


10 Year Bond Rate

-10

-5

0

5

10

15

20

25

Jun-

06

Dec-

06

Jun-

07

Dec-

07

Jun-

08

Dec-

08

Jun-

09

Dec-

09

Jun-

10

Dec-

10

Jun-

11

Dec-

11

Jun-

12

Dec-

12

Jun-

13

Dec-

13

Jun-

14

Dec-

14

Jun-

15

Dec-

15

Tota

l ret

un (%

pa)




REAL GDP GROWTH (%)

CROSS-BORDER INVESTMENT TO ASIA PACIFIC

PRIME INDUSTRIAL CAP RATE

TOTAL RETURN BY SECTOR (ROLLING ANNUAL %PA)

Australian cities headed the most popular destinations for inbound industrial and logistics investment in the Asia Pacific region - representing half of the top 10 positions. Indeed, Australia's shift from the old engines of mining dependent growth to the new engines of service based growth has gathered momentum. Reflecting this, investment volumes have followed economy activity towards the east coast: Sydney, Melbourne and Brisbane.

3 - 21 21 - 44 44 - 90 90 - 180 180 - 280 280 - 390 390 - 750

TOTAL VOLUME IN 2015-16FY: (USD $ MILLION)Source: Colliers Edge / RCA

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

4

INDUSTRIAL EDITION

THE TECH DISRUPTIONIn cities like Sydney and Melbourne, which have undergone a surge in residential values, industrial assets have been forced out of urbanised areas. Nonetheless, the impact of technology, changes in consumption habits, infrastructure development and population growth are shifting the nature of demand from industrial assets. The advent of shorter delivery times has escalated the demand for last mile fulfilment centres. The growth in e-retailing, moreover, has forced the adaptation of modern warehousing across the entire supply chain. These factors are now driving a divergence in asset pricing.

Sold by Colliers International as part of a portfolio to Ascendas on behalf of GIC/Frasers for $1,073,000,000

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

5

THE INFRASTRUCTURE EVOLUTION Land constraints have begun to materialise in certain markets, causing constraints to development pipelines. The requirement for infrastructure development has never been more important: unlocking new areas and while causing an uplift in existing ones. Now, though, historically low interest rates are funding historically high levels of infrastructure development. There is above $99.4 billion in public spending committed to transportation infrastructure projects over the forthcoming four years. The transportation trepidations that once stalked the logistics market are now being addressed. In addition, the implicit uplift in existing assets are being realised.

Source: Colliers Edge / Federal & State Budgets 2016-17

%

%

%

% % %

%

US

NEW

ZEA

LAND

UK

EURO

ZONE

SING

APO

RE

AUST

RALI

A

2.0

2.81.1

2.0 1.7 1.83.1

ECONOMIC UPDATE The Australian economy has so

far dispelled fears on its ability to emerge from the end of its largest ever mining boom. In the past year the Australian economy has gained impetus by following a higher growth path. According to the latest ABS figures, the economy grew at the strongest rate in 3.5 years, outpacing its global counterparts. Australia has now undergone 20 consecutive quarters of positive growth. Most significantly, the last time Australia experienced a technical recession was over 25 years ago - a streak second only to Netherlands. The national unemployment rate, moreover, has dropped to its lowest point in 2.5 years. This was underscored by a confluence in larger commodity export volumes and a softer dollar encouraging growth in the non-mining sector.

Indeed economic activity has shifted to the east coast, with New South Wales (NSW) and Victoria (VIC) doing much of the heavy lifting. The commodity based economies have faced headwinds created by the legacy of the resource boom. NSW and VIC have demonstrated strong economic, employment and retail growth in the past year.

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

UK US Eurozone Canada Singapore NZ Australia

GDP

Annu

al g

row

th r

ate

(%)

GDP annual growth (%)

Source: Colliers Edge / O�ce for national statistics/ U.S Bureau of economic analysis/ Eurostat, Statisitcs Canada/Statisitcs Singapore, Statistics NZ/ ABS. (Q1 2016)

-5.00% -3.00% -1.00% 1.00% 3.00% 5.00%

NSW

VIC

QLD

SA

WA

Growth Statistics - 12 Month Period

Retail Turnover Employed Persons Economic Growth

Source: Colliers Edge / ABS Final Demand (Mar-16), ABS Labor Force State (May-16), ABS Retail Turnover (May-16)

$0

$200

$400

$600

$800

$1,000

$1,200

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Expo

rt V

alue

s to

Chi

na (m

illio

n A$

)

Expo

rt V

alue

(mill

ion

A$)

Australian Beef Exports

Export Value (million AU$) Export values to China (million AU$)

Source: Colliers Edge/ Meat & Livestock Australia

$1.04

$0.71

36.7

58.1

35

40

45

50

55

60

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

2010

2011

2012

2013

2014

2015

2016

Exch

ange

Rat

e ( A

UD/

USD

)

PMI I

ndex

Australian Manufacturing PMI vs AUD/USD

ABS Retail Annual Turnover ($m)

AUD/USD (RHS) AU PMI (LHS)

Source: Bloomberg Markets/ Colliers Edge

$10,058.10

$3,481.40 $3,420.90

$1,980.50 $1,595.50

$4,444.10 2.40%

3.00%

4.30%4.70%

3.80%

5.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Food Cafes & Restaurants Other Clothing, Footwear & Accessories

DepartmentStores

Household Goods

Annu

al G

row

th (%

)

Reta

il Sa

les

($m

)

Source: ABS Retail Turnover (Apr-16) /Colliers Edge

$56.4 billionNSW $3.1 billionSA$17.7 billionVIC $10.4 billionWA$12.1 billionQLD $1.1 billionNT$278 millionACT $1.4 billionTAS

GDP ANNUAL GROWTH (%)

PUBLIC SPENDING COMMITMENT TO TRANSPORTATION INFRASTRUCTURE - NEXT 4 YEARS

GROWTH STATISTICS - 12 MONTH PERIOD

CANA

DA

Source: Colliers Edge/ Office for national statistics/ U.S Bureau of economic analysis/ Eurostat/ Statistics Canada/Statistics Singapore/ Statistics NZ/ ABS. (Q1 2016)


$99.4 BILLION

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

6

INDUSTRIAL EDITION

providing 0.4 per cent to the quarter’s impressive 1.1 per cent growth. Meanwhile, Australia’s household savings ratio has trended downwards in the past two years, falling from 9.5 to 8.1. Indeed the recent strength in growth and employment results will likely feed additional growth in consumption. Notwithstanding this, retail turnover growth has been progressed at a modest rate of 3.6 per cent for the year. These figures were however dampened by low fuel prices and increased price competition among major supermarkets. Food retailing is the largest component of retail turnover, accounting for over 40 per cent of national turnover volumes. This was evident in the latest CPI results, where price deflation was experienced in transportation and food & non-alcoholic beverages categories.

The local dollar, once an anchor to the manufacturing sector, will now act as a catalyst. This net export contribution will be a key ingredient in Australia’s forthcoming economic and employment growth.

Household consumption was the strongest contributor to Q1 2016 GDP,

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


GDP

Annu

al g

row

th r

ate

(%)



-5.00% -3.00% -1.00% 1.00% 3.00% 5.00%

NSW

VIC

QLD

SA

WA




$0

$200

$400

$600

$800

$1,000

$1,200

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Expo

rt V

alue

s to

Chi

na (m

illio

n A$

)

Expo

rt V

alue

(mill

ion

A$)




$1.04

$0.71

36.7

58.1

35

40

45

50

55

60

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

2010

2011

2012

2013

2014

2015

2016

Exch

ange

Rat

e ( A

UD/

USD

)

PMI I

ndex





$10,058.10

$3,481.40 $3,420.90

$1,980.50 $1,595.50

$4,444.10 2.40%

3.00%

4.30%4.70%

3.80%

5.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000


DepartmentStores

Household Goods

Annu

al G

row

th (%

)

Reta

il Sa

les

($m

)


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


GDP

Annu

al g

row

th r

ate

(%)



-5.00% -3.00% -1.00% 1.00% 3.00% 5.00%

NSW

VIC

QLD

SA

WA




$0

$200

$400

$600

$800

$1,000

$1,200

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Expo

rt V

alue

s to

Chi

na (m

illio

n A$

)

Expo

rt V

alue

(mill

ion

A$)




$1.04

$0.71

36.7

58.1

35

40

45

50

55

60

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

2010

2011

2012

2013

2014

2015

2016

Exch

ange

Rat

e ( A

UD/

USD

)

PMI I

ndex





$10,058.10

$3,481.40 $3,420.90

$1,980.50 $1,595.50

$4,444.10 2.40%

3.00%

4.30%4.70%

3.80%

5.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000


DepartmentStores

Household Goods

Annu

al G

row

th (%

)

Reta

il Sa

les

($m

)


0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%


GDP

Annu

al g

row

th r

ate

(%)



-5.00% -3.00% -1.00% 1.00% 3.00% 5.00%

NSW

VIC

QLD

SA

WA




$0

$200

$400

$600

$800

$1,000

$1,200

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Expo

rt V

alue

s to

Chi

na (m

illio

n A$

)

Expo

rt V

alue

(mill

ion

A$)




$1.04

$0.71

36.7

58.1

35

40

45

50

55

60

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

2010

2011

2012

2013

2014

2015

2016

Exch

ange

Rat

e ( A

UD/

USD

)

PMI I

ndex





$10,058.10

$3,481.40 $3,420.90

$1,980.50 $1,595.50

$4,444.10 2.40%

3.00%

4.30%4.70%

3.80%

5.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000


DepartmentStores

Household Goods

Annu

al G

row

th (%

)

Reta

il Sa

les

($m

)


The economy navigated some challenging conditions coming into the year. The equities market has now recovered from its stumble into 2016 and resource prices have recovered from their lows late last year. Most important, Australia’s greatest trading partner, China, has undergone a relatively soft landing. Impacts from China’s shift to a consumption based economy was felt as it fuelled growth in Australia’s agricultural, tourism and pharmaceutical sectors.

The Reserve Bank of Australia (RBA) recently flexed its easing bias with a mandate to manage inflationary pressures. The cash rate was cut once in the fiscal year, at the May monetary policy meeting - to a record low of 1.75 per cent. This was in response to a weak Q1 inflation result and a stubbornly high Australian dollar. Despite the strong GDP performance, the RBA’s May interest rate decision reaffirmed its priority toward maintaining its inflation target. Nonetheless, the RBA now has an opportunity revise up its growth forecasts. Since the cut, the local dollar reached a low of US$0.72 cents before bouncing back to the US$0.75 cent mark. Further depreciation is expected once the US Federal Reserve embarks on its long anticipated federal rate hikes. If this process is postponed, the RBA will likely employ further cuts to soften the local dollar. This will no doubt provide a boost to local services and goods exports.

AUSTRALIAN BEEF EXPORTS

AUSTRALIAN MANUFACTURING PMI VS AUD/USD

ABS RETAIL ANNUAL TURNOVER ($M)A

Collie

rs In

tern

atio

nal p

ublic

atio

n

7

NATIONAL VOLUMES It was another remarkable year

in industrial sales, with over $7.64 billion of in investment sales recorded. Coming in less than one per cent below the volume recorded last financial year; it was more than double the highs seen in 2007-08 financial year. Indeed transaction activity reflected the economic shift towards the east coast of Australia, with volumes concentrated in NSW and VIC. Since the 2010-11 fiscal year, NSW and VIC have increased their proportion of total sales, accounting for 78 per cent of the sales volume in the last year.

In the 2015-16FY a total of 424 industrial properties were sold, slightly below than the 426 in the preceding financial year. However, still well above the 10-year-average of 212 sales per annum. The rally of industrial sales in NSW has been quite staggering. In the past two years, with NSW accounting for 519 out of the 850 investment sales nationwide.

YEAR IN REVIEWNSW AND VIC ACCOUNTED FOR $5.9 BILLION OF INDUSTRIAL AND LOGISTICS SALES VOLUME IN 2015-16FY.

BIGGEST SHARE

TRANSACTION VOLUMES AND AVERAGE TRANSACTION CAP RATE

TRANSACTIONS BY STATE

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SQM

('00

0)

Industrial supply & construction pipeline

Completed Under Contruction Plans approved / submitted 10 year annual average

10 year annual average

0.07

0.075

0.08

0.085

0.09

0.095

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Aver

age

Tran

sact

ion

Intia

l Yie

ld (%

)

Tran

sact

ion

volu

me

($ b

illio

ns)

Transaction volumes and average transaction cap rate

NSW VIC QLD WA SA ACT Other Average Initial Yield (%) - RHS


7.33%

8.99%

7.32%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

-150

-100

-50

0

50

100

150

200

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Aver

age

Initi

al Y

ield

YoY

chan

ge (b

ps)

Average initial yield (transaction data)

NSW YoY (bps) QLD YoY (bps) SA YoY (bps) VIC YoY (bps) WA YoY (bps) Average Initial yield (%)


INDUSTRIAL SALES

INDUSTRIAL PROPERTIES SOLD

BILLION7.64

424

1LESS THAN

BELOW THE VOLUME RECORDED LAST FINANCIAL YEAR

%

NSW

270 SALES IN

2015-16FY.

76 46 46 67 45 79 66 249 270

50 28 44 57 40 44 59 87 85

49 27 28 53 30 39 43 65 39

20 20 9 21 27 28 10 14 14

11 9 3 5 11 8 10 8 11

NSW

VIC

QLD

WA

SA

2007 - 2008

2008 - 2009

2009 - 2010

2010 - 2011

2011 - 2012

2012 - 2013

2013 - 2014

2014 - 2015

2015 - 2016

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

8

INDUSTRIAL EDITION

CAP RATES The average industrial cap rate fell below the

record levels experienced in the 2007-08FY. The average cap rate transacted in the last financial year was 7.32 per cent, one basis point below that in the 2007-08FY. This was unsurprising given the sheer weight of capital and demand for robust income. Like last year, cap compression was experienced

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SQM

('00

0)




0.07

0.075

0.08

0.085

0.09

0.095

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Aver

age

Tran

sact

ion

Intia

l Yie

ld (%

)

Tran

sact

ion

volu

me

($ b

illio

ns)




7.33%

8.99%

7.32%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

-150

-100

-50

0

50

100

150

200

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Aver

age

Initi

al Y

ield

YoY

chan

ge (b

ps)




AVERAGE CAP RATE

7.32167 BASIS POINTS BELOW THAT IN THE 2012-13FY.

%

AVERAGE INITIAL YIELD (TRANSACTION DATA)

across all the major states but SA. Indeed the sharp decline in the overall cap rate was due to the weighting of transactions in NSW and Victoria, which had the greatest YoY decline: -104bps and -47bps respectively.

Sold by Colliers International to First State Super and Altis Property Partners on behalf of Bankstown and Camden Airports for $203,000,000

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

9

Sellers The seller group was more saturated with the high level

of prices luring a broader range of owners to market. Over 156 different sellers brought their properties to market in the financial year. Australia's largest industrial real estate operating company, Goodman, were the largest seller in the fiscal year: selling 21 assets to the value of $1.38 billion. Given the prevailing level of prices, owner occupiers capitalised on conditions by selling their assets too. Corporates were the second largest net disposers, with over $1.6 billion in sales in the fiscal year.

Seller name Divestment volume

Assets sold

Seller type

Goodman Group

$1.380 billion* 21 REOC

GIC (Govt of Singapore) JV Frasers Property

$1.073 billion 26 Sovereign Wealth Fund

JP Morgan $250 million 6 Investment Manager

Woolworths Ltd $310 million 2 Corporate

Oxford Cold Storage

$206 million 1 Corporate

*Includes $58.4 million in JV CPP Investment Board

PARTICIPANTS Buyers Buyer activity was dominated by both REITs and Listed funds.

Over $1.4 billion of industrial assets were acquired by REITs. This was spearheaded by the $1.073 Ascendas acquisition of the GIC portfolio. Listed funds purchased $1.152 billion of assets. Of this, Charter Hall were responsible for $1.128 billion in investments.

Buyer name Investment volume

Assets acquired

Buyer type

Ascendas (A-REIT)

$1.152 billion 27 REIT

Charter Hall $1.128 billion 13 Listed Fund

Blackstone $640.0 million 15 Equity Fund

AMP $307.9 million 8 Investment Manager

Logos Property Services*

$267.0 million 2 Developer/Owner/Operator

Propertylink $232.8 million 12 Investment Manager


-$2.0 -$1.5 -$1.0 -$0.5 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5

REIT

Listed Funds

Developer/Owner/Operator

Equity Fund

Investment Manager

Government

REOC

Corporate

Transaction Volumes ($ Billions)


Acquisitions Disposals

Buyers Sellers Net Acquisitions

DISPOSALS ACQUISITIONS

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

10

INDUSTRIAL EDITION

Given the prevailing level of prices, owner occupiers also capitalised on conditions by selling their assets. Corporates were the second largest net disposers, with over $1.6 billion in divestments.


A Co

lliers

Inte

rnat

iona

l pub

licat

ion

11

OFFSHORE PARTICIPATION Offshore buyers increased their

footprint into the Australian industrial and logistics market in the financial year. Enticed by the healthy returns and regulatory confidence in Australian assets: the offshore component of sales volume last year increased to 29 per cent; from 11 per cent in the FYE2016. Notably, however, the GIC portfolio sale to Ascendas made up 56 per cent of this volume. At the same time, the offshore value of sales would likely be understated given the sizable levels of offshore capital being deployed via domestic operators.

AUSTRALIA

63%SINGAPORE

21%UNITED STATES

12%CHINA

2%OTHER

2%

PURCHASER COUNTRY 2015-16FY


2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

12

volumes have swelled in the past three years. Last year was no different, with operators vying to acquire instant scale. Over $2.51 billion in portfolio sales have taken place in the FYE2016. Trumpeted by the GIC portfolio - 11 industrial portfolios were sold in the year.

Portfolio Purchaser Sale total (Industrial asset

allocation)

Yield Rate ($/m2)

Date Industrial assets

JP Morgan AMP Capital Investors $250 m 6.50% $1,695 Jun-16 6

Goodman Blackstone $640 m 7.40% $1,211 Jun-16 15

Alex Fraser Charter Hall $44 m 7.40% - Jun-16 3

Charter Hall Propertylink $135 m 8.75% $1,244 May-16 8

Altis (II) Mapletree $85 m 7.30% $1,607 May-16 4

TyreMax Fife Capital $35 m 7.1% $1,409 Nov-15 2

Undisclosed Mair Group $10 m - $1,427 Nov-15 2

GIC Ascendas $1.073 b 6.10% $1,700 Sep-15 26

CPP Investment Board JV Goodman

Undisclosed $58 m - - Sep-15 2

360 Total Return Fund Undisclosed $30 m - $1,715 Sep-15 2

GPT Granville Exit Toplace Developments $64 m 5.60% $2,778 Aug-15 2

PORTFOLIO SALES In recent years the advancements in distribution technology

has been the keystone in achieving economies of scale in the sector. Furthermore, given the difficulty in obtaining core and core plus assets, portfolio transactions including these demanded premiums. The volume of portfolio sales

TRANSACTION TRENDS

PORTFOLIO SALES

BIL

LIO

N

BIL

LIO

N

1.48 2.51MIL

LIO

N2.122013/14 2014/15

2015/16


A Co

lliers

Inte

rnat

iona

l pub

licat

ion

13

Property Rentable area Bought Sold

28-38 Salta Drive, Altona North, VIC

23,854m2 $14,500,000 November 2014

$38,000,000 October 2015

Linfox Warehouse 16-28 Transport Drive, Somerton, VIC

21,495m2 $14,550,000 June 2013

$23,300,000 February 2015

Goodyear Warehouse - Meridian BP. 1 Heyington Ave, Thomastown, VIC

938m2 $5,187,500 April 2009

$12,200,000 November 2015

Kidman Park 404-450 Findon Road, Kidman Park, SA

58,790m2 $35,110,000 June 2012

$57,300,000 November 2015

DB Schenker 94-106 Lenore Drive Erskine Park, NSW

21,000m2 $28,000,000 June 2012

$44,431,268 November-2015

ANALYSING THE CYCLE Since 2007 over 41 industrial assets have been purchased

and re-sold. In this period, these properties achieved an average re-sale premium of 10.03 per cent per annum. Unsurprisingly, the largest capital appreciation were in properties offering longer WALE terms.

The upper per centile of these cases were occurrences at which owner-occupiers capitalised on current sales conditions and exercised sale-and-leaseback options. In other instances assets bundled into portfolio sales also received premium values.



2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

14

INDUSTRIAL EDITION

Given the comparatively healthy returns offered by Australian industrial assets, we anticipate yields to decline further, albeit at a moderated pace. Additionally, volumes will likely be aligned to economic fundamentals with the pursuit of assets along the south eastern seaboard to endure. Opportunities will nonetheless emerge in the recovering states of QLD, SA and WA. We anticipate the demand from offshore purchasers will rise in the near term. Firstly, in this global low rate environment the flattening long-run-yield curves will highlight the outperforming returns offered by Australian core industrial assets. Secondly, the anticipated US federal rate hike is now looking less likely. As such, investors will revisit their capital deployment mandates. Finally, Australia’s comparatively strong economic; and entailed employment and retail turnover will assure investors. Thus, looking forward, the demand for Australia’s industrial and logistics assets will remain in vogue.

Keeping up with this demand is proving increasingly difficult. Traditionally owners had the option of building an asset or acquiring it. The latter has become ever more challenging. More recently, the number of prime assets coming to market has notably slowed. Further compounding this decline in stock: the pipeline remains relatively constrained too. This is in part due to the lack of, well-located, developable land. The record levels of transportation infrastructure development will help unravel these constraints, though. This will shift a focus to land opportunities. Appreciation in land values has already transpired in certain markets within Sydney and Melbourne – with similar trends expected elsewhere.

New properties will need to be developed with technology at the fore. The modern era of disruptive technologies, if ignored, will cast a new set of obsolescence risks for assets. Notwithstanding this, these same technologies present opportunities for owners to gain efficiencies, reduce costs and implicitly increase the value of their properties. Looking forward, an increasing number of larger-sized industrial properties will become automated. Meanwhile, smaller-sized assets located near the city-fringe, constrained markets, will be targeted for last-mile-fulfillment. Indeed the advent of dark-supermarkets, predictive analytics and mobile technologies will have profound effects on investment activity in the coming years.

INVESTMENT OUTLOOK

GAME CHANGERGAME CHANGER

CHALLENGER VISIONARY

PredictiveAnalytics

Green Supply Chains

3D Printing

New Channels for Last-mile

Delivery

Connectivity - Big data and the

Internet of things

Change is happening tomorrow

Change is happening

now

Niche supply chain disruptor

Complete supply chain

disruptor

Automation

Mobile Technology

INDUSTRIAL SUPPLY & CONSTRUCTION PIPELINE

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SQM

('00

0)




0.07

0.075

0.08

0.085

0.09

0.095

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Aver

age

Tran

sact

ion

Intia

l Yie

ld (%

)

Tran

sact

ion

volu

me

($ b

illio

ns)




7.33%

8.99%

7.32%

7.00%

7.50%

8.00%

8.50%

9.00%

9.50%

-150

-100

-50

0

50

100

150

200

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Aver

age

Initi

al Y

ield

YoY

chan

ge (b

ps)




Source: GRA

Source: Colliers Edge / Cordell Projects

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

15

We have seen solid capital growth in every sector, increases in market rents across most precincts, prolonged investor confidence through broader expansionary economic conditions and wider infrastructure spending, and tenant retention (with many instances of expansionary requirements).

The increased focus on the distribution and logistics sectors has continued, and will continue to do so. As such, the drivers in the national industrial sector for the foreseeable future will remain centric to the efficient movement of goods.

From a valuation and investment perspective this has resulted in a prolonged compressionary environment, and continued pressure on investment hurdles, namely core capitalisation rates and Internal Rates of Return (IRR’s). The well-publicised ‘lower for longer’ concepts now seem deep set in the investor mindset. Such has resulted in a renewed focus on valuation methodologies, and the integrity of inputs and assumptions within Discounted Cash Flow analysis (‘DCF’).

With IRR’s now firmly in the spotlight, intra cash flow capital expenditure and asset lifecycle costing has become integral in engineering a firm case to both the valuation quantum, and the resultant investment hurdle rates displayed as a result.

With laser focus from investors over sustainable returns throughout the chosen investment horizon, terminal values and terminal capitalisation rates are now scrutinised by market participants, notwithstanding the positive outlook on values. Terminal value assumptions have a material impact on valuation metrics. Such a focus on terminal assumptions has typically been witnessed in contractionary environments, however we consider it heartening to see wider analysis in this regard, further cementing the notions of ‘lower for longer’ for the sector.

Looking forward, we consider the current environment of tighter returns will remain throughout 2016 and into 2017. Whilst this is positive for those already in the market, such conditions are making it increasingly difficult for entry into the market. These barriers to entry are further compounded

VALUATION OUTLOOKby the number of market participants, creating competitive tension in open market situations, particularly in portfolio acquisitions where we have seen an almost unprecedented level of activity in recent times. Portfolio acquisitions provide prospective purchasers comparatively rare opportunities The preceding 24 month period witnessed

continued strengthening in all market sectors. Favourable economic conditions and overall market confidence has been the primary contributor to such conditions, however microeconomic and sector specific influences have also contributed to the strength in the national industrial markets.

By Anthony Mylott, National Director, Industrial Valuation & Advisory Services

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

16

INDUSTRIAL EDITION

to acquire scale in the industrial sector, and as a result, have been hotly contested.

With a foreseeable low interest rate environment, solid capital inflows nationally, a positive rental story in most subsectors and a healthy depth of market participants both

locally and internationally, we have confidence that the health of the wider industrial investment sector will continue. Market activity will be limited to available investment grade opportunities going forward. Should prime grade stock become limited, we see some risk of investors heading up the risk curve with the acquisition of lower grade assets.

Drivers in the national industrial sector for the foreseeable

future will remain centric to the efficient movement of goods.

Sold by Colliers International as part of a portfolio to Ascendas

on behalf of GIC/Frasers for $1,073,000,000

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

17

Prime YieldsPrime Initial

Yield (%)Total

Investment Total Vacancy

(%)

SYDNEY 6.73% $3.26 b 4.40%

MELBOURNE 6.99% $2.67 b 7.70%

BRISBANE 7.06% $920 m 11.90%

PERTH 7.13% $508 m 7.24%

ADELAIDE 8.28% $453 m 2.70%

FYE2016 INVESTMENT SUMMARY

INDUSTRIAL INVESTMENT MAP

WESTERN AUSTRALIA

NORTHERNTERRITORY

SOUTHAUSTRALIA

Major airport

Major seaport

Intermodal terminal

TRANSACTIONS FYE2016 ABOVE $5 MILLION

Source: Colliers Edge

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

18

INDUSTRIAL EDITION

ADELAIDE

PERTH

QUEENSLAND

NEW SOUTH WALES

NORTHERNTERRITORY

SOUTHAUSTRALIA

VICTORIA

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

19

BRISBANE

SYDNEY

MELBOURNE

NEW SOUTH WALESBy Sas Liyanage Research Analyst, Research

The NSW market continued its rally which commenced early in the 2014-15FY. Against the backdrop of an accelerating state economy, in excess of $3.26 billion took place in the last financial year. In the past 24 months, the NSW economy boasted a superior employment, retail turnover and economic growth rate. Furthermore, the commitment of over $56 billion to transportation infrastructure in the forthcoming four years is over triple that of next highest state. It’s no wonder Sydney remained the preferred destination for investment volumes in the Asia-Pacific region. Over 38 per cent of offshore capital was placed in NSW’s industrial and logistics assets. At the same time, NSW accounted for 47 per cent of the national investment sales volumes.

Given this level of demand, the state’s industrial properties underwent a substantial firming in cap rates. In the past two years NSW’s average cap rate has declined by 207bps. In 2015-16FY it fell 104bps below its previous low in 2007, sitting at 6.77 per cent.

Portfolio sales played a prominent theme for the NSW market. The lion’s share of assets from portfolios were situated in Sydney. Indeed over 41 per cent of the total portfolio sales volumes were for Sydney-based assets. The aforementioned GIC industrial portfolio had a 44 per cent transaction volume weighting toward Sydney. As such Sydney accounted for $567 million of sales from the $1.073 billion total. Outside this, the JP Morgan and Goodman portfolios comprised of 7 assets from the NSW market.

Sydney’s industrial landscape is undergoing a transformation not seen in years. The stock in the inner industrial markets have diminished in midst of significant withdrawals for alternate use and infrastructure development. In the Sydney South, Inner West and Sydney North markets net effective rental growth has materialised from the ever increasing scarcity in assets. Yields in these markets have declined substantially in recent years, moreover. The average transaction yield in South Sydney last fiscal year, by example, were 16bps tighter than those in 2007. Since 2013,

MAJOR TRANSACTIONS OVERVIEW

the average transaction yield in Sydney South declined by 226bps to 6.79 per cent.

Meanwhile the Outer West and North West market have become hubs of activity, with institutions undertaking speculative developments - triggered by a confluence in market confidence and pockets of rental growth. These markets have welcomed tenants displaced from the inner markets and others looking to consolidate operations. Investment volumes in the West have had eight consecutive years of growth. Volumes last year were 545 per cent greater than those in 2008. Since 2013, the average transactional yield fell by 237bps, while investment volumes grew at an average of 52.9 per cent per annum. The South West market is experiencing a sea change on the back of the Moorebank Intermodal. The project, Australia’s largest intermodal freight precinct, is expected to include a subdivision plan for up to 1,000,000m2 over 243 hectares of land. The precinct is expected to accommodate the extra capacity from a new terminal at Port Botany, to be open in 2017. Significant level of enquiry and pockets of rental growth has already eventuated in response to this.

Average Yields Average Capital Values ($/m2) Land Value ($/m2)Sub-market Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 ChangeSydney West 7.00% 6.94% -0.06% $1,750 $1,756 0.34% $350 $417 19%

Sydney South 7.00% 6.25% -0.75% $2,354 $2,747 16.69% $1,200 $1,550 29%

Sydney South West 7.25% 7.13% -0.12% $1,552 $1,555 0.19% $290 $350 21%

Sydney North 7.75% 6.38% -1.37% $2,200 $3,111 41.41% $950 $1,200 26%

Average 7.25% 6.68% -0.58% $1,964 $2,292 16.71% $698 $879 24%

NSW

41

47TOTAL PORTFOLIO SALES VOLUMES WERE FOR SYDNEY-BASED ASSETS

%

%OF THE NATIONAL INVESTMENT SALES VOLUMES.


2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

20

INDUSTRIAL EDITION

VICTORIABy Adrian Rowse Director, Industrial

In Melbourne, the current industrial market is characterised by a significant volume of capital searching for investment grade stock, scarcity of quality prime assets, limited (serviced) land supply and a pipeline constrained of speculative supply. This demand is driving higher capital values and tighter yields.

The Melbourne industrial property market continues to see demand grow from logistics and warehousing users, and this is underpinned by the strong performance of the port. Although some older manufacturing industries, such as the clothing/footwear and automotive industries, have been in steady decline for a number of decades now, the logistics sector and emerging manufacturing industries such as food (particularly dairy) production and alternative automotive

manufacturing (ATVs, caravans etc.) are going some way to fill this gap in demand. Overall, the Melbourne industrial market will be dominated by the logistics and warehousing sector, and those areas that provide affordable, greenfield land for development and are well located to Melbourne’s freeway network, are the areas where demand will be concentrated.

The largest estate transaction was of Parkwest Industrial Estate within the western suburb of Derrimut, which was acquired in Q3 2015 by Charter Hall directly from Goodman for $285 million. This asset includes 16 warehouse facilities and a café constructed between 1996 to 2015, and was leased to 18 tenants with a combined WALE of circa 4.8 years.

There have also been a number of significant single tenanted distribution centre transactions, the greatest being the


A Co

lliers

Inte

rnat

iona

l pub

licat

ion

21

acquisition by Charter Hall of the Woolworths Distribution Centre at Dandenong South. This transaction occurred on a fund-through basis subject to a 20 year lease to Woolworths, with reported sale price of circa $215 million, with the 68,000m2 facility estimated for completion by the end of 2017. The second major single tenanted asset transaction was that of 1 Hume Highway, Laverton North, acquired by Logos in Q4 2015 on a 25 year sale and leaseback from Oxford Cold Storage. The sale price of $206 million reflected a yield of 6.8 per cent for this large cold store facility. The third major single tenanted asset transaction was that of 63 Fitzgerald Road, Laverton North, sold by Goodman to Charter Hall for approximately $98.4 million. The asset was leased to Metcash with approximately 6 years remaining on the lease, and reflected a yield of approximately 6.9 per cent.

As with Sydney, Melbourne’s industrial market constitutes of a number of submarkets, each with unique characteristics which change the nature of the investment sales deals. The city fringe, and more particularly the Port Melbourne precinct, continues to be characterised by a major change in usage, that is from a predominantly industrial area to one now highly sought after by residential developers. The rezoning of much of Port Melbourne (Fishermans Bend) to Capital City Zone has not only changed the usage of sites within that zone, but also in the surrounding areas of Port Melbourne that are still appropriate for industrial use. The major industrial site sale within the Port Melbourne precinct was the sale of GMH’s 37.7ha site at 241 Salmon Street. The site consists of five parcels bordered by Salmon Street, Todd Road, Lorimer Street and Cook Street and accounts for 30 per cent of industrial land in Port Melbourne. As at the date of publication of this document the sale price and purchaser were not disclosed. The largest investment sale in the precinct was the acquisition by AMP Capital of 704-744 Lorimer Street from Centennial Property Group for $36.2 million in Q3 2015. This asset comprises 7 tenants with the sale price reflecting a yield of circa 7.8 per cent.

The transport and logistics sector continues to drive demand space in the North, and users are now competing for a dwindling supply of vacant stock over 5,000m2. The two largest investment transactions in the north were of assets forming part of the Goodman Portfolio sale, being Northgate Distribution Centre at Somerton, and Campbellfield Distribution Centre. In addition, 125-175 Patullos Lane Somerton sold for $25.25 million reflecting a yield of 8.2 per cent as part of a 3 property national portfolio. The largest transaction on an individual basis was the acquisition by Warrington Capital of Dexus Wholesale Property Fund’s Melbourne Airfreight Centre for $23.85 million.

This deal was transacted off-market and reflected an initial yield of 6 per cent, albeit noting that the 5.6 hectare site was 31 per cent vacant at the time of sale.

The west industrial market continues to be the dominant industrial market in Melbourne, and was the key sales driver over the 2015-16 FY. The major sales within this submarket included the Parkwest Industrial Estate transaction ($285 million), Metcash facility at Laverton North ($98.4 million), Oxford Cold Storage transaction ($206 million) and other sales incorporated within both the GIC/Frasers and Goodman portfolios.

Investment sales deals in the south/east and outer east have been led by the transaction of the Woolworths DC at Dandenong South, reported at $215 million. The next largest transaction was that of Powerpark Industrial Estate at Dandenong South, acquired by Charter Hall direct from Goodman for $88.5 million in Q3-15. This asset comprises 3 industrial buildings and 5 separate tenancies with a WALE at the time of sale of 7.1 years. Other major transactions included 14 Ordish Road and 35-61 South Park Drive, Dandenong South, both of which formed part of the GIC/Frasers portfolio sale.

Average Yields Average Capital Values ($/m2) Land Value ($/m2)Sub-market Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 ChangeCity fringe 7.00% 6.88% -0.12% $2,442 $2,492 2.05% $800 $925 16%

North 7.56% 7.38% -0.18% $1,042 $1,067 2.40% $238 $258 8%

West 7.06% 6.94% -0.12% $1,067 $1,086 1.78% $160 $175 9%

South East 7.25% 6.88% -0.37% $1,200 $1,244 3.67% $270 $285 6%

Outer East 7.25% 6.88% -0.37% $1,152 $1,236 7.29% $350 $350 10%

Average 7.28% 7.02% -0.26% $1,115 $1,158 3.86% $255 $267 5%

VIC

41

47INVESTMENT VOLUMES INCREASED BY

%

bpsTRANSACTIONAL YIELDS DECLINED BY

FY2015/16

FY2015/16


2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

22

INDUSTRIAL EDITION

QUEENSLANDBy Peter Willington Research Manager, Research

Fierce competition for the few assets that have been brought to market has led to further contraction in the yield achieved for investment grade assets. Following an exceptional 2014-15 financial year ($1.17 billion), the total value of sales recorded in the 2015-16 fiscal year was $920 million in 31 transactions, in line with the result of the 2013-14 fiscal year. These transactions reflected a tightening of prime yields by 50 to 100 basis points from the end of the previous fiscal year.

As a consequence of the significant yield compression in prime grade assets; secondary assets had something of a renainsence with a substantial number of purchasers by privates and syndicators. Similarly, many investors moved further up the risk curve throughout the year in order to maximise yield. Appetite, however, remains strongest for well-located assets offering annuity type income with long WALEs occupied by tenants with strong covenants.

The highlight of the year was the Ascendas acquisition of a portfolio of national assets from GIC. Four Queensland assets were included in the portfolio totalling to some $213.4

million. Over 110,000m2 of built area transacted with all but one asset, that was limited by a 0.1 year WALE, transacting at yields below 6.6 per cent.

The largest sale to occur in the period (outside of the Ascendas portfolio acquisition) was the sale of 1-5 Bishop Drive at the Port of Brisbane for $63 million in early 2016. Logos Property Services bought the 76,693m2 facility from IPS Logistics at an equivalent reversionary yield of 8.75 per cent. The relatively high yield is reflective of the 3 year WALE at the time of transaction.

Average Yields Average Capital Values ($/m2) Land Value ($/m2)Sub-market Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 ChangeAustralia TradeCoast 7.15% 6.83% -0.32% $1,573 $1,648 4.77% $275 $275 -

North 7.63% 7.25% -0.38% $1,410 $1,468 4.11% $238 $238 -

South 7.50% 7.00% -0.50% $1,333 $1,429 7.20% $225 $225 -

South West 7.63% 7.00% -0.63% $1,311 $1,429 9.00% $225 $225 -

Yatala 7.63% 7.13% -0.50% $1,213 $1,298 7.01% $200 $200 -

Average 7.51% 7.06% -0.50% $1,368 $1,454 6.29% $222 $222 -

2014/15 FINANCIAL YEAR

2015/16 FINANCIAL YEAR

$

$1.17920

BIL

LIO

NM

ILLI

ON

TOTAL VALUE OF SALES

QLD



A Co

lliers

Inte

rnat

iona

l pub

licat

ion

23

SOUTH AUSTRALIA By Kate Gray Associate Director, Research

The Adelaide industrial market has seen volumes increase over the 2015/16 FY. Total sales volumes for sales over $5 million according to the Colliers Edge were $204.1 million for this period. This is up from the $137.16 million in the 2015/16 FY. There has been one transaction recorded above $5 million in the first half of 2016 therefore the strong sales result is due to transactions in the second half of 2015. The strongest price point in the Adelaide market is below $2 million as this tends to attract both private investors and smaller owner occupiers which is the bulk of the Adelaide industrial market.

Prime industrial yields have tightened only marginally over the last 12 months with an average yield of 8.05 per cent as at June 2016. There are however differences in market performance. The West and the Inner North markets have continued to perform well and still attract solid demand when offered to the market. Demand is coming from an even mix of both occupiers and investors, with the strongest enquiry below $10 million. The Adelaide industrial market has a strong private ownership for industrial property and therefore private investors and small to medium business therefore account of a significant proportion of both vendors and purchasers.

Enquiry in the leasing market has also improved in the first half of 2016. Prime rents have grown marginally over the last 12 months to an average of $102/m2. Incentives for prime grade property have remained stable over the last 12 months with an average of 14 per cent as at June 2016.

Institutional investors have been active over the last 12 months accounting for around 76 per cent of the total sales value. There is also an emerging trend for offshore purchasers being more active in the Adelaide market. We saw a one significant transaction purchased by a Singaporean investor. The Adelaide industrial market is still offering yields which are higher than in most other east coast industrial markets, and therefore Adelaide is an attractive investment option. During 2014 there were several significant industrial portfolios which transacted, with some Adelaide assets included in the sale. This has not been a trend that has continued in the Adelaide market during 2015/16 with all of the sales over $5 million being single asset sales.

Yields across regions have varied significantly, and of

particular note is the Outer North. This is a relevantly new market offering prime grade buildings, but has a high exposure to the automotive industry. There have been several sales in this market which are below the $5 million threshold, but several of these assets have sold below replacement value. The risk premium on these properties were high due to the risk of vacancy and the perceived difficulty in attracting tenants, and therefore yields have been higher in this sub market. Despite the fact Holden is still to close next year, vacancy has fallen in this precinct and therefore there is likely to be some scope for yields to begin to tighten. Other industrial sub markets have been largely unaffected by the imminent Holden closure with vacancy remaining low and yields tightening slightly over the last 12 months. The announcement of the submarine contract to have a significant build in SA will continue to support development and investment in the Adelaide industrial market, in particular in the Osbourne/Port Adelaide area.

Average Yields Average Capital Values ($/m2) Land Value ($/m2)Sub-market Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 ChangeOuter North 8.25% 8.25% 0.00% $1,030 $970 -5.83% $70 $68 -3.6%

Inner North 8.00% 7.75% -0.25% $1,375 $1,470 6.91% $210 $210 0.00%

West 7.40% 7.25% -0.15% $1,931 $1,931 0.00% $425 $425 0.00%

Outer South 9.00% 9.25% 0.25% $861 $843 -2.09% $70 $80 14.20%

Inner South 7.88% 7.50% -0.38% $1,647 $1,647 0.00% $400 $425 6.25%

Average 8.08% 8.05% -0.03% $1,274 $1,291 1.33% $194 $196 0.97%

TOTAL SALES

AVERAGE VACANCY

$204.1 MIL

LIO

N

SALES OVER $5 MILLIONSA

%2.70


2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

24

INDUSTRIAL EDITION

WESTERN AUSTRALIA By Quyen Quach Senior Research Analyst, Research

Modern industrial facilities that are well leased and well located with strong cash flows are assets that continue to be sought by investors, despite challenges in the leasing market. This robust demand and limited supply of investment grade assets for sale have resulted in yield compression over the past year.

Notwithstanding the moderation in market rents over the past year, investment grade facilities with strong lease covenants and secure tenants are still providing some of the best returns across the commercial property sector. In comparison to fixed income and low yield, low risk investments they present as highly attractive.

According to IPD’s Australian Quarterly Digest, WA industrial income return was the best performer across the three commercial sectors at 8.6 per cent in the year to December 2015. This was higher than the Australian national average of 7.6 per cent for the same period. It was also stronger than the Perth CBD office market at 6.9 per cent and WA retail investments at 6.7 per cent.

There were 13 major (over $5 million) investment transactions that occurred in the Perth metropolitan area during 2015-16 financial year, representing a combined total value of $463.4 million. In the first five months of 2016 there were 6 major transactions totalling $290.1 million. This included Charter Hall’s $240 million acquisition of the ‘Stockyards’ industrial estate in Hazelmere.

Perth’s comparatively smaller industrial market remains dominated by local high net worth individuals, with long-term hold strategies who tend to be unperturbed by the cyclical fluctuations of the market; and to date have maintained their portfolios.

In contrast, foreign and institutional investors feature to a lesser extent in the Perth industrial sector. This is attributed to a perception that industrial assets in Perth are higher risk in comparison to other cities, based on the view that WA’s economy lacks diversity. Major foreign purchases in past years have generally been the result of national portfolio acquisitions with combined assets from a number of cities, rather than individual asset acquisitions.

However, over the past two and a half years transaction records reveal an increased institutional investor appetite for Perth assets. This compounded demand in a low interest rate environment has resulted in Prime asset yields tightening to the lowest on record; currently sitting at circa 6.5 per cent, and closer aligned to yields achieved in major cities in the east. This is evident in Charter Hall’s recent purchase of the ‘Stockyards’ industrial estate from Goodman Group, with an indicative passing yield of circa 6.5 per cent.

Going forward, Colliers International expects continued robust interest from institutional investors as yields remain comparatively attractive, Perth population expands and WA transitions to a more diverse economy. We expect this to further increase the curiosity of foreign investors and institutions in Perth industrial assets. However, it is expected transactional activity will remain limited given the standing of the private market and general resistance to divestment of investment grade assets.

Average Yields Average Capital Values ($/m2) Land Value ($/m2)Sub-market Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 ChangeCore 7.38% 7.13% -0.25% $1,254 $1,263 0.72% $470 $425 -9.5%

North Region 7.38% 7.00% -0.38% $1,254 $1,286 2.55% $365 $338 -7.4%

South Region 7.50% 7.13% -0.37% $1,200 $1,228 2.33% $368 $300 -18.5%

East Region 7.25% 6.88% -0.37% $1,310 $1,345 2.67% $368 $340 -7.6%

Average 7.38% 7.00% -0.38% $1,255 $1,286 2.47% $368 $338 -8.15%

$463.4 MIL

LIO

NWA 13

MAJOR TRANSACTIONS REPRESENTING A TOTAL COMBINED VALUE OF


A Co

lliers

Inte

rnat

iona

l pub

licat

ion

25

26 ASSETS The GIC/Frasers Property portfolio was the largest ever

industrial portfolio to come to market. Comprising of 26 industrial assets, mostly on the Eastern Seaboard, the portfolio was sold to offshore buyer Ascendas from Singapore in one line. The sales price represented a premium of $120m to book value. It was the largest ever industrial transaction in Australia and the second-largest industrial property deal to date in the Asia Pacific region.

THE LARGEST PORTFOLIO SALE IN AUSTRALIAN HISTORY

GIC LOGISTICS PORTFOLIOSale Date November 2015Vendor GIC & Frasers Property

Purchaser Ascendas

Sale price $1,073,000,000

Tenants Various, including Coles, DB Schenker, Toll, Kmart, Destle and Pacific Brands

Income $66m fully leased

GLA 630,946m2

WALE 5.7 years

$/m2 $1,700/m2 GLA

Yield 6.1%

CASE STUDIESSold by Colliers International as part of a portfolio to Ascendas

on behalf of GIC/Frasers for $1,073,000,000

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

26

INDUSTRIAL EDITION

ALTIS PROPERTY PARTNERS SECOND AREEP PORTFOLIO DIVESTMENT Consisting of 9 properties across 3 states, the ALTIS AREEPII

Portfolio was taken to market by Colliers International and sold in May 2016.

All assets are well located in proven, established core markets benefiting from existing and planned infrastructure.

Seven of the nine assets are located in Sydney, New South Wales, representing 74% weighting of the portfolio. The assets totalled over 100,000sqm of building area with a total site area of over 330,000

9 ASSETS

PART PORTFOLIO - ALTIS AREEPIISale Date May 2016Vendor Altis Property Partners

Purchaser Mapletree

Sale price $85,000,000

Tenants Cope Sensitive TRS & Yates

Income $6.3m

GLA 52,907m2

WALE 5.3 years

$/m2 $1,607

Yield 7.30%

Sold by Colliers International to Mapletree on behalf of

Altis Property Partners for $285,000,000 A

Collie

rs In

tern

atio

nal p

ublic

atio

n

27

ASSETS ACROSS AUSTRALIA Portfolio made up of eight leasehold and freehold assets:

Victoria (4 assets), Queensland (2 assets), Adelaide (1 asset) and New South Wales (1 asset). Three of the assets in Victoria are leasehold assets subject to ground-leases which expire June 2047. Sold to Propertylink for $135.3m on an 8.1% yield.

EIGHT ASSET PORTFOLIO

CHARTER HALLSale Date May 2016Vendor Charter Hall

Purchaser Propertylink

Sale price $135.3m

Tenants Kathmandu, Fastline, Thales Australia

Income 229,827m2

GLA 108,776m2

WALE 5.9 year

$/m2 $1,244/m2

Yield 8.7%

Sold by Colliers International to Propertylink on behalf of Charter Hall for $135,300,000

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

28

INDUSTRIAL EDITION

15 INDIVIDUAL ASSETS The Goodman Property portfolio represents the second

largest ever industrial portfolio to transact within the Australian market. Comprising of 15 industrial assets, mostly on the Eastern Seaboard.

The portfolio was sold by Colliers in an off-market deal to Blackstone.

SECOND LARGEST INDUSTRIAL PORTFOLIO IN AUSTRALIA TO BE SOLD

GOODMAN PORTFOLIOSale Date July 2015Vendor Goodman

Purchaser Charter Hall

Sale price $640m

Tenants Various, including Metcash, Coles, Woolworths

Income $48.2m

GLA 528,601m2

WALE 6.1 years

$/m2 $1,211/m2 (GLA)

Yield 7.4%

Sold by Colliers International to Blackstone on behalf of Goodman for $640,000,000.

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

29

INVESTORS CONFIDENT IN THE FUNDAMENTALS The key driver for ongoing sales activity in the industrial

sector is the positive period of economic growth that is supporting occupier demand. The stability in the manufacturing sector’s number of businesses and employment expectations as well as the rising importance and strength of the construction and transport, postal and storage sectors bodes well for the future.

OPPORTUNITY FOR OFFSHORE PURCHASERS The industrial sector in New Zealand represents almost

40 per cent of total activity for properties that sell for NZD $5 million or more. While locals are clearly active, historically there have been limited offshore purchasers who often cite a lack of value quantum and scale in the sector. However, given the market’s strong asset appreciation as well as solid occupier fundamentals and depth in sales turnover, this will change. There could be a well-reasoned argument for more offshore purchasing of industrial property in the future, especially for those investors looking to diversify their existing portfolio.

YIELDS TO FIRM FURTHER Investors are ‘yield-hungry’ and low debt costs are driving

market sentiment and investment yields to new record lows. The lack of good quality stock to buy will keep yields firming further over the next 12 months, albeit at a slower rate than the past 12 months. We expect positive investment conditions will continue for as long as interest rates remain low, occupier demand remains high and investors remain cautiously optimistic. Some ‘squeezed out investors’ are driving up values and lowering yields in the secondary sector - sometimes considered to be a signal the market is reaching a peak. However, the examples are limited and we have not seen multiple occurrences of profit-taking and careless, euphoric market trading. Investors in the industrial sector are well-founded in their optimism and purchasing activity.

New Zealanders have a love affair with industrial property. In the financial year to June 2016, as in most years over the last two decades, approximately half of all sales transactions at all price levels in New Zealand were industrial properties.

DEMAND DRIVES INVESTOR SENTIMENT Occupier demand is at cyclical highs across most main

cities. Tenants searching for new or larger spaces are struggling to find suitable premises to work from. Auckland’s vacancy is at a record low 2.2 per cent and Wellington is at 3.6 per cent, which is a six year low. While Christchurch is also experiencing low vacancy rates at 2.1 per cent, the earthquake rebuild has likely peaked, which will alleviate some of the demand pressure from its current highs.

Despite the demand transition in Christchurch, there are more purchasers than quality properties for sale, a common feature across all locations that is driving up prices. Investors are confident in current and projected cash flows and yields are firming to new record lows. The current outlook suggests more of the same for the next 12 months with little relief for new entrants that won’t meet the market’s pricing levels.

STRONG SALES, BUT STILL BELOW THE LAST PEAK Although investor enthusiasm is high, our analysis of

industrial sales since the late 1990s shows that FY 2014/15 was a record year with an aggregate value of NZD$1.2 billion for properties that sold for NZD $5million or more. However, provisional data for FY 2015/16 came close with NZD $1.1 billion from 98 sales. This is likely a reflection of stock availability rather than demand.

NZ INDUSTRIAL OVERVIEW

Average Yields Average Capital Values ($/m2) Land Value ($/m2)Sub-market Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 Change Q2 2015 Q2 2016 ChangeAuckland 6.64% 6.07% -0.57% $1,986 $2,292 15.41% $376 $440 17%

Wellington 8.22% 7.86% -0.36% $1,066 $1,230 15.38% $367 $392 7%

Christchurch 7.55% 7.18% -0.37% $1,603 $1,714 6.92% $265 $285 8%

Average 7.47% 7.08% -0.39% $1,551 $1,745 12.51% $336 $372 11%

Source: Colliers International Research NZ

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

30

INDUSTRIAL EDITION

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Auckland Wellington Christchurch Remainder of NZ

Tran

sact

ion

Valu

e (m

illio

ns)

FYE 2015

Source: CoreLogic, Colliers International Research NZNote: Property sales of NZD$5m or more only. Provisional data for FYE 2016

FYE 2016P

MAJOR INDUSTRIAL SALES BY VALUE FYE 2015 VS FYE 2016

232 Cavendish Drive, Wiri sold on behalf of Gek Property Nominee (Nesdale no. 2) Ltd for $18,400,000

The industrial sector in New Zealand represents almost 40% of total activity for properties sold for over $5 million.

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

31

DETAILED TRANSACTION LISTSELECTED SALES ONLY. SALES ABOVE $5 MILLION

FYE 2016 SALES

QLD SALES TOTAL

$920 MILLION

ACT SALES TOTAL

$20.4 MILLION

WA SALES TOTAL

$463 MILLION

SA SALES TOTAL

$204 MILLION

NSW SALES TOTAL

$3.26 BILLION

VIC SALES TOTAL

$2.67 BILLION

%

%%%%

%

34.5

12.0172.50.3

42.5

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

32

INDUSTRIAL EDITION

NSW SALES

ADDRESS SUBURB STATE BUILT AREA SALE PRICE SALE

DATE

CAPITAL VALUE ($/M2)

INITIAL YIELD (%)

VENDOR PURCHASER

NEW SOUTH WALES

Sydney Metro Airports - Bankstown and Camden

Bankstown NSW 133,000 $203,000,000 Nov-15 $1,526 8.22% BAC Holdco Pty Limited

Altis Property Partners

Kmart Warehouse, 7 Grevillia St Eastern Creek NSW 51,709 $111,027,793 Sep-15 $2,147 5.60%

GIC (Govt of Singapore) JV

Frasers PropertyAscendas

M4 Greystanes Industrial Park, 6-20 Clunies Ross St

Greystanes NSW 38,578 $76,600,000 Dec-15 $1,986 6.70% Deka-Immobilien Global A-REIT

82 Peter Brock Dr Eastern Creek NSW 12,000 $72,000,000 Dec-15 $6,000 - Woolworths Ltd DCI Technology Holdings

Harvey Norman Centre, 494-500 Gardeners Rd

Alexandria NSW 12,062 $63,000,000 Aug-15 $5,223 6.00% ISPT Arkadia

Bunnings Eastgardens, 140 Denison St

Hillsdale NSW 14,761 $56,000,000 Sep-15 $3,794 5.15% BWP Trust Cook Property Group

40 Talavera Rd Macquarie Park NSW 13,185 $54,000,000 May-16 $4,096 5.73% Altis Property

Partners Aqualand

57-75 Templar Rd Erskine Park NSW 30,115 $50,000,000 Dec-15 $1,660 6.90% DEXUS M & G Real Estate

Lots 2 & 399 Hollinsworth Rd Marsden Park NSW 31,040 $49,000,000 Mar-16 $1,579 -

Taylor Construction

GroupActron Air

274 Victoria Rd Rydalmere NSW 22,734 $47,550,000 Dec-15 $2,092 6.65% ISPT Mirvac

1-15 Kellet Cl Erskine Park NSW 23,267 $47,353,052 Sep-15 $2,035 6.00%GIC (Govt of

Singapore) JV Frasers Property

Ascendas

1 A & 1B Raffles Glade Eastern Creek NSW 21,694 $45,438,779 Sep-15 $2,095 5.98%GIC (Govt of


Ascendas

Fairfax Printing, 1 Worth St Chullora NSW 37,716 $45,000,000 Aug-15 $1,193 7.53%* Fairfax Media Charter Hall

DB Schenker, 94-106 Lenore Dr Erskine Park NSW 21,142 $44,431,268 Sep-15 $2,102 5.40%



297 Kurrajong Rd Prestons NSW - $38,992,200 Aug-15 - - 5 Private vendors Charter Hall

Mitsubishi Motors, 19 Berry St Granville NSW 13,500 $37,499,986 Aug-15 $2,778 5.60% GPT Group

ToPl Developments

(AUS)

494 Great Western Hwy Arndell Park NSW 25,256 $35,363,662 Sep-15 $1,400 7.50%



Source: Colliers Edge / RCA. *Equivalent market yields

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

33


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

NEW SOUTH WALES

Lot 4, Honeycomb Dr Eastern Creek NSW 19,918 $35,061,408 Sep-15 $1,760 5.70%GIC (Govt of


Ascendas

546 Gardeners Rd Alexandria NSW 12,207 $35,000,000 Aug-15 $2,867 6.00% Fuji Xerox (Australia) P/L Goodman

Post Logistics Warehouse, 23 Wonderland Dr

Eastern Creek NSW 23,117 $34,000,000 Sep-15 $1,471 8.00% McDonald Bros Holdings Pty Ltd Stockland

Sigma Warehouse 1 Powers Rd Seven Hills NSW 13,555 $30,326,103 Sep-15 $2,237 5.90%



1 Inglis Rd Ingleburn NSW 17,513 $29,500,000 Dec-15 $1,684 6.29% Quintessential Equity

M&G Real Estate

53 Britton St Smithfield NSW 13,484 $27,800,000 May-16 $2,062 7.10% Altis Property

PartnersMaPletree

Logistics Trust

15 Berry St Granville NSW 9,900 $27,499,990 Aug-15 $2,778 5.60% GPT GroupToPl

Developments (AUS)

Wonderland Dr Eastern Creek NSW 15,800 $27,100,000 Feb-16 $1,715 VP Sale Frasers Property Lend Lease

114 Kurrajong Ave Mount Druitt NSW 18,137 $24,300,000 May-16 $1,340 7.10% Altis Property

PartnersMaPletree

Logistics Trust

202-212 Euston Rd Alexandria NSW TBA $24,000,000 Dec-15 TBA 7.50%Australian

Refined Alloys Pty Ltd

Goodman Group JV Altis

Property

113 Wicks Rd Macquarie Park NSW 6271 $23,255,000 Aug-15 $3,708 6.98% Kings IAPF

Lot 23 Eucalyptus Pl Eastern Creek NSW 8,284 $23,072,019 Sep-15 $2,785 6.00%GIC (Govt of


Ascendas

484-490 Great Western Hwy Arndell Park NSW 13,303 $21,056,995 Sep-15 $1,583 6.80%



28 Rodborough Rd Frenchs Forest NSW 4,975 $20,000,000 Mar-16 $4,020 7.70% Undisclosed Private Investor

Technicolor, 134-138 Euston Rd Alexandria NSW 7,014 $18,500,000 Aug-15 $2,638 6.26% Chauvel

Investments Goodman

405-407 Victoria Wetherill Park NSW 11,028 $17,700,000 May-16 $1,605 7.10% Altis Property

PartnersMaPletree

Logistics Trust

PYD Bldg, 197 Young St Waterloo NSW 3,230 $17,600,000 Oct-15 $5,449 6.00% Private Investor Private Investor

92 Kurrajong Ave Mt Druitt NSW 6,624 $17,250,000 Jun-16 $2,604 6.83% Charter Hall Propertylink

27 Frank St Wetherill Park NSW 13,781 $16,564,000 Dec-15 $1,202 8.37% Border Express Propertylink

357-373 Warringah Rd Frenchs Forest NSW 9,429 $16,169,580 Sep-15 $1,715 - 360 Total Return

Fund Undisclosed

8 Farrow Rd Campbelltown NSW - $16,000,000 Nov-15 - - Farrow Rd Pty Ltd Al Maha Pty Ltd

361 Newbridge Rd Moorebank NSW 5,164 $15,500,000 Sep-15 $3,002 - Chork, Chen & Xie

361 Newbridge Rd Pty Ltd

18 Burnet Rd Warnervale NSW 20,367 $15,500,000 Dec-15 $761 - Carlton United Breweries

Australasian Conference

Association Ltd ATF Seventh Day Adventist

Church

Wellen Warehouse, 159 Newton Rd Wetherill Park NSW 12,264 $15,500,000 Nov-15 $1,264 9.63% CWHT Lester Group

3 Distillers Pl Huntingwood NSW 8,963 $15,200,000 May-16 $1,696 7.10% Altis Property

PartnersMaPletree

Logistics Trust


2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

34

INDUSTRIAL EDITION

3 Apollo Pl Lane Cove NSW 3,471 $15,133,841 Apr-16 $4,360 - Trip Industrial Pty Ltd

Sandhurst Trustees

1-15 Sturt St Smithfield NSW 15,739 $15,050,000 Aug-15 $956 VP Sale Coca Cola Amatil (Aust) Pty Ltd

Bunnings Properties Pty

Ltd

2 Costello Pl Seven Hills NSW 11,116 $14,870,000 Sep-15 $1,338 7.85%DEXUS

Wholesale Property Fund

Propertylink Holdings Pty Ltd

154 Euston Rd Alexandria NSW 7,680 $14,189,000 Dec-15 $1,848 VP SaleEuston

Properties Pty Limited

Hy-Tec Industries Pty

Ltd

247 King St Mascot NSW 10,852 $43,500,000 Dec-15 $4,110 VP Sale - Jewell Properties

Ricoh Sydney Headquarters, 8 Rodborough Rd

Frenchs Forest NSW 8,065 $13,830,372 Sep-15 $1,715 - 360 Total Return Fund Undisclosed

AHG HQ, 402 Hoxton Park Rd Prestons NSW 17,200 $13,755,000 Aug-15 $800 6.30% AHG Charter Hall

8-10 Jessica Pl Prestons NSW 8881 $13,188,565 Aug-15 $1,485 8.48%Sentry

Properties Pty Ltd

Jessica Pl Investments

4 Alspec Pl Eastern Creek NSW 9,666 $13,000,000 Aug-15 $1,345 8.14%*Makita

(Australia) Pty Ltd

Vitex Pharmaceuticals

Pty Ltd

78-80 Adderley St W Auburn NSW 4,421 $12,500,000 Aug-15 $2,827 4.10% Ausberg Purchaser Royal Tiles

23-25 Princes Rd E Auburn NSW 10,459 $12,500,000 May-16 $1,195 7.67%

Guardian Property Holdings

Ben Lee and Co

4 Hope St Melrose Park NSW 6,500 $12,400,000 Sep-15 $1,908 7.20%

RARN Property Company Pty Ltd c/o Nuss

Removals

Melrose Park Transport Pty

Ltd

1333 the Horsley Dr Wetherill Park NSW 8,881 $12,400,000 Oct-15 $1,396 7.19% Anglo Irish Investment

Scafworx Investments

Pty Ltd

40 Archbold Rd Minchinbury NSW 7,435 $12,000,000 Mar-16 $1,614 -Gazal

Investments Pty Ltd

Bachechi Bros. Realty, Inc.

1-3 Ellis Ave Alexandria NSW 3,764 $12,000,000 Oct-15 $3,188 5.25% Austcorp MBA Capital

8 Stout Rd Mount Druitt NSW 8,327 $11,500,000 Dec-15 $1,381 -

Colin Neville & Gianna Glesomina Swadling

ARNEG Oceania Pty Ltd

58 Huntingwood Dr Huntingwood NSW 8,460 $11,450,000 Jul-15 $1,353 8.12%Thyra

Custodians Pty Ltd

Primewest Funds Pty Ltd

Lane Cove West Business Park, 5 Orion Rd

Lane Cove NSW 6,412 $11,250,000 Sep-15 $1,755 -

Bremon Group Property

Investment No 2 Pty

Undisclosed

8 Bridges Rd Moorebank NSW 31,530 $10,800,000 Jul-15 $343 - KPI Holdings Pty Ltd

Coronation Property Co

Pty Ltd

165-169 Lower Gibbes St Chatswood NSW 4066 $10,800,000 Aug-15 $2,656 6.46%* Cavalier

Bremwoth Private Investor

373 Horsley Rd Milperra NSW 9,314 $10,625,000 Aug-15 $1,141 6.77% GDI Property Group

GSAN Pty Ltd Aft the GSAN Family Trust No.1 Account


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

NEW SOUTH WALES


A Co

lliers

Inte

rnat

iona

l pub

licat

ion

35

28 Biloela St Villawood NSW 11,750 $10,500,000 Jan-16 $894 - Undisclosed Undisclosed

70 Lower Gibbes St Chatswood NSW 4225 $10,000,000 Aug-15 $2,367 - Abacus Property Group

Warrington Property Group

(AUS)

152 Euston Rd Alexandria NSW 2,788 $10,000,000 Aug-15 $3,587 VP Sale Reconstructions Pty Ltd

Euston Rd Property

171 Briens Rd Constitution Hill NSW 1,625 $9,500,000 Aug-15 $5,847 - Cavalier Corporation Undisclosed

4 Steel St Blacktown NSW 14,314 $9,150,000 Dec-15 $639 - Wattyl Australia Epping Real Estate Pty Ltd

60 Mary St St Peters NSW 3,712 $9,100,000 Dec-15 $2,452 - Acamalotta Pty Ltd

Sheike Two Properties Pty

Limited

150 Euston Rd Alexandria NSW 2,788 $9,090,909 Aug-15 $3,261 VP Sale Reconstructions Euston Road Properties

Villawood Industrial Estate, 3-5 Birmingham Ave

Villawood NSW 8,894 $9,000,000 Aug-15 $1,012 VP SaleWoodland Properties

Australia Pty Ltd

Michael Christopher Pels

29-33 King Rd Hornsby NSW 4,697 $8,800,000 Jun-16 $1,873 VP Sale Private Entity Undisclosed

44-54 Bourke Rd Alexandria NSW 2,550 $8,750,000 Dec-15 $3,431 - Undisclosed Undisclosed

36-48 Ashford Ave Milperra NSW 7,771 $8,600,000 Dec-15 $1,107 - Wix Pty Ltd Undisclosed

6 Inglis Rd Ingleburn NSW 6,922 $8,550,000 Dec-15 $1,235 7.40% S & S Holdings Pty Limited Fife Capital

22 Shale Pl Eastern Creek NSW 7,722 $8,250,000 Dec-15 $1,068 6.05% Alvanley Gardens Pty Ltd

Gns Ceramics Pty Ltd

1-5 Commercial Rd Alexandria NSW 2,469 $8,200,000 Aug-15 $3,322 6.55% GPT GroupToPl

Developments (AUS)

65-71 Whiting St Artarmon NSW 2,179 $8,000,000 Jul-15 $3,671 - Propertylink Robin Blackburn

95 Wetherill St Silverwater NSW 4,116 $7,813,000 Jun-16 $1,898 7.10% Manassen & Palaru

Silverwater Partnership

Sandvik Mining Orange NSW 3,288 $7,800,000 Dec-15 $2,372 -Eastern

Developments (NSW) Pty Ltd

Flatt Glass Holdings

90 Hannell St Wickham NSW 5,603 $7,800,000 Nov-15 $1,392 -

Acslament Constructions

Pty Limited and Hannell St Pty

Limited

DPC Holdings Pty Limited

129 Station Rd Seven Hills NSW 10,550 $7,725,000 Sep-15 $732 -Hillglen

Enterprises Pty Ltd

Station Rd Sevo Pty Ltd

3-9 Forge St Blacktown NSW 8,400 $7,650,000 Jun-16 $911 9.50% BWP Trust GM Property

17-23 Bryant St Padstow NSW 7,972 $7,500,000 Jul-15 $941 - Undisclosed Kassira

12 Birmingham Ave Villawoord NSW 6,350 $7,500,000 Jul-15 $1,181 6.46% HTI Management

Bae Corp Nominees Pty Ltd ATF The

Bae Corp Family Trust

Collins on Bourke, 90-96 Bourke Rd Alexandria NSW 1,412 $7,500,000 Oct-15 $5,312 7.41%

HSF Property Developments

Pty LtdUndisclosed

14 Healey Cir Huntingwood NSW 2,956 $7,475,000 Oct-15 $2,529 5.82% Undisclosed Undisclosed

609 Harris St Ultimo NSW 1534 $7,050,000 Sep-15 $4,596 - Undisclosed Undisclosed

23-25 May St St Peters NSW 2700 $7,000,000 Sep-15 $2,593 - Private Private



DATE


INITIAL YIELD (%)

VENDOR PURCHASER

NEW SOUTH WALES

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

36

INDUSTRIAL EDITION

24 Bernera Rd Prestons NSW 18,300 $7,000,000 May-16 $383 - Chignone Apex

Investmnets

73 Victoria St Smithfield NSW 3,745 $6,575,000 May-16 $1,756 - Undisclosed Undisclosed

110 Christina Rd Villawood NSW 4,907 $6,500,000 Dec-15 $1,325 9.70% Toll Transport Limited Nepotian Pty Ltd

521-525 Botany Rd Zetland NSW 866 $6,500,000 Aug-15 $7,506 VP Sale Zebral Pty Ltd Chosen Group Pty Ltd

41 Jersey Rd Baysawter NSW 7,314 $6,450,000 Oct-15 $882 - Cca Bayswater Pty Ltd

Tilley Soaps Australia Pty Ltd

Belrose Gateway Centre, 1 Niangala Cl Belrose NSW 2,251 $6,350,000 Dec-15 $2,821 8.14%


Frasers Property

Aventus Retail Prop Fund

10 St James Pl Seven Hills NSW 3,113 $6,100,000 Sep-15 $1,960 6.38%Graebar

Properties Pty Ltd

Private Investor

20 Queen St Revesby NSW 5,267 $5,800,000 Nov-15 $1,101 5.75% Giuseppe and Michael Calabro

Sam Nachabe and Michael

Nachabe

85 York Rd Jamisontown NSW 1,328 $5,710,000 Dec-15 $4,300 5.88% NSW Government Undisclosed

16 Bernera Rd Prestons NSW 20,000 $5,600,000 Jan-16 $383 - Chignone Fobexu Pty Ltd

466 W Botany St Rockdale NSW 2,934 $5,505,000 May-16 $1,876 - Undisclosed Undisclosed

3 Apollo Pl Lane Cove West NSW 3,480 $5,500,000 May-16 $1,580 - Denison Group Undisclosed

10 Yarrunga Rd Prestons NSW 20,300 $5,475,000 Apr-16 $269 - Pipicella Gunlake

Concrete Pty Ltd

6 Seville St Fairfield East NSW 4,546 $5,350,000 Sep-15 $1,177 6.50% Kon Holdings Tian Yuan Pty Ltd

358 Eastern Valley Way (Units 2&3) Chatswood NSW 2,316 $5,300,000 Jul-15 $2,288 - Bob Simkin John Conroy

396 Marion St Condell Park NSW 4,000 $5,300,000 Jun-16 $1,325 - Marion Developments Undisclosed

20 George Young St Auburn NSW 2,868 $5,250,000 Sep-15 $1,831 VP Sale Undisclosed Core Technology Partners

NEW SOUTH WALES TOTAL $3.26 billion



DATE


INITIAL YIELD (%)

VENDOR PURCHASER

NEW SOUTH WALES

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

37


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

VICTORIA

Parkwest Industrial Estate Derrimut VIC 227,930 $285,000,000 Sep-15 $1,250 6.22% Goodman Group Charter Hall

(CPIF & CLP)

Woolworths Distribution Centre, 255 Glasscocks Rd

Dandenong South VIC 68,750 $238,302,872 Dec-15 $3,466 5.70% Woolworths Ltd Charter Hall

Oxford Industrial Estate, 1 Hume Rd Laverton North VIC 123,089 $206,000,000 Dec-15 $1,674 6.75% Oxford Cold

Storage

Logos Property Services

OBO Ivanhoe Cambridge

Computershare, 452-484 Johnston St Abbotsford VIC 16,577 $88,888,888 Jun-16 $5,362 - Computershare LYZ Property

Group

Powerpark Industrial Estate Dandenong South VIC 71,815 $88,500,000 Sep-15 $1,232 6.64% Goodman Group Charter Hall

(CPIF)

Scoresby Industry Park, Stud Rd Scoresby VIC 49,900 $73,000,000 Sep-15 $1,463 - Perfection

Private Group ISPT

14 Ordish Rd Dandenong South VIC 28,189 $56,319,906 Sep-15 $1,998 5.50%GIC (Govt of


Ascendas

676 Kororoit Creek Rd Altona North VIC 44,036 $55,413,146 Sep-15 $1,258 5.90%GIC (Govt of


Ascendas

31 Permas Way Truganina VIC 44,540 $51,080,845 Sep-15 $1,147 5.70%GIC (Govt of


Ascendas

35-61 South Park Dr Dandenong South VIC 32,167 $41,408,732 Sep-15 $1,287 6.20%GIC (Govt of


Ascendas

28-38 Salta Dr Altona North VIC 23,854 38,000,000 Mar-16 $1,681 6.90% F Mayer Imports Pty Ltd Lend lease

309 Fitzgerald Rd Derrimut VIC 27,432 $37,090,000 Jun-16 $1,352 7.02% Charter Hall Propertylink

700 Kororoit Creek Rd Altona North VIC 28,020 $36,874,930 Sep-15 $1,316 6.50%GIC (Govt of


Ascendas

704-744 Lorimer St Port Melbourne VIC 26,252 $36,200,000 Aug-15 $1,379 7.90% Centennial Property Group

AMP Capital Investors

251-261 Salmon St Port Melbourne VIC 9,453 $35,000,000 Jun-16 $3,703 7.39% Altis Property Partners Rod Jane

9-15 Andretti Court Truganina VIC 48,280 $28,210,329 Sep-15 $584 6.30%GIC (Govt of


Ascendas

162 Australis Dr Derrimut VIC 23,252 $26,497,559 Sep-15 $1,140 6.70%GIC (Govt of


Ascendas

9-19 Alex Fraser Dr Laverton North VIC 2,037 $24,300,000 Jun-16 $11,929 6.00% Alex Fraser P/L Charter Hall

15-31 Americain Way & 50 Jayco Dr Dandenong South VIC 18,846 $22,850,000 Dec-15 $1,212 7.00% Private Fife Capital

2 Aylesbury Dr Altona VIC 17,513 $22,568,263 Sep-15 $1,289 6.20%GIC (Govt of


Ascendas


VIC SALES

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

38

INDUSTRIAL EDITION

254-258 Chesterville Rd Moorabbin VIC 50,384 $20,000,000 Feb-16 $397 - Philip Morris Up Property

(AUS)

89 Drake Boulevard Altona VIC 14,099 $18,135,211 Sep-15 $1,286 6.20%GIC (Govt of


Ascendas

285 Burwood Rd Hawthorn VIC 4,509 $17,000,000 Apr-16 $3,770 - Undisclosed LYZ Property Group

750 Springvale Rd Mulgrave VIC 17,100 $16,950,000 Nov-15 $991 7.34% MarksHenderson GM Property

88 Ricketts Rd Mt Waverley VIC 10,269 $16,000,000 Jul-15 $1,558 8.10% Up Property (AUS) Undisclosed

The Age Print Centre,31-69 Western Ave

Westmeadows VIC 25,000 $16,000,000 Sep-15 $640 - Fairfax Media Robert Zagame

31-69 Western Ave Tullamarine VIC 24,091 $16,000,000 Sep-15 $664 - Fairfax Print Holdings Pty Ltd Bobby Zagame

19 Corporate Ave Rowville VIC 12298 $15,100,000 Sep-15 $1,228 7.60% IOOF Australian Unity

Lot 7A, 207 Sunshine Rd Tottenham VIC 62,000 $15,000,000 Nov-15 $242 - Olex Australia

Pty LtdTIC Group Pty

Ltd

Lot 207A, 207 Sunshine Rd Tottenham VIC 7,339 $15,000,000 Sep-15 $2,044 - Nexans Olex TIC Group

35 O'herns Rd Somerton VIC 7,232 $15,000,000 Nov-15 $2,074 6.50% Genis Steel JV CorPlex Undisclosed

130 - 138 Link Rd Tullamarine VIC 21,157 $14,900,000 Jun-16 $704 10.47% Charter Hall Propertylink

455 Cooper St Epping VIC - $14,700,000 Jun-16 - 7.30% Alex Fraser P/L Charter Hall

fmr Clipsal site, 81-89 Queens Parade Fitzroy North VIC 3,177 $14,050,000 Nov-15 $4,422 - Undisclosed Undisclosed

43 Toll Dr Altona North VIC 21,324 $13,475,000 Sep-15 $632 - JP Holdings CPG TD Fund 1 Pty Ltd

fmr Goodyear Warehouse- Meridian BP, 1 Heyington Ave

Thomastown VIC 10,094 $12,942,716 Nov-15 $1,282 7.70% TyreMax Fife Capital

Global Freight, 34-36 Banfield Ct Truganina VIC 11,759 $12,500,000 Dec-15 $1,063 - Undisclosed Undisclosed

87-105 Racecourse Rd North Melbourne VIC 5,630 $12,000,000 Nov-15 $2,131 - Chubb Security Undisclosed

11-13 Chambers Rd Altona North VIC 10,632 $10,800,000 May-16 $1,016 - Undisclosed Undisclosed

Packcentre Marketing Warehouse, 1-5 Siddons Way

Hallam VIC 9,389 $10,750,000 Sep-15 $1,145 7.10% Dawwood Pty Ltd

Harmony Property

Syndication

143-147 National Blvd Campbellfield VIC 11,752 $10,600,000 Oct-15 $902 7.76% Jiang's Pty Ltd Peak Equities

41-57 South Centre Rd Tullamarine VIC 13,716 $10,515,000 Jun-16 $767 12.01% Charter Hall Propertylink

33-59 Clarinda Rd Oakleigh South VIC 10,774 $10,500,000 Aug-15 $975 - 360 Capital IND Fund Bidvest Group

31-49 Nathan Rd Dandenong South VIC 10,436 $9,900,000 Apr-16 $949 - Goodman Group Nutri Biotech

82-96 Hampstead Rd Maidstone VIC 18,400 $9,300,000 Jul-15 $505 - John SmithMaidstone

Management Pty Ltd

Lot 1 Cnr Hammond Rd & Rodeo Dr, DANDENONG SOUTH

Dandenong South VIC 7,100 $8,874,881 Feb-16 $1,250 -Vaughan

Constructions Pty Ltd

Ampacet

40-50 Mark Anthony Dr Dandenong South VIC 8,761 $8,375,000 Oct-15 $956 8.20% Undisclosed Undisclosed



DATE


INITIAL YIELD (%)

VENDOR PURCHASER

VICTORIA

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

39

50 Jayco Dr Lyndhurst VIC - $8,350,000 Dec-15 - -Gervale

Nominees Pty Ltd

Undisclosed

26 Parsons Ave Springvale VIC 16,132 $8,300,000 Jul-15 $515 - Peter Clark Clx No 1 Holdings Pty Ltd

Middy's Data & Electrical, 91-93 Victor Cres

Narre Warren VIC 561 $8,250,000 Jul-15 $14,706 - Crecoona Court Pty Ltd Undisclosed

6 Advantage Dr Dandenong South VIC 5061 $8,000,000 Aug-15 $1,581 - Undisclosed Undisclosed

Lot 1, 33-35 Garden St Kilsyth VIC 5,882 $7,600,000 Aug-15 $1,292 - Undisclosed Undisclosed

120 Colemans St Epping VIC 5,061 $7,300,000 Jun-16 $1,442 6.51% Salta Undisclosed

415 Warrigal Rd Burwood VIC 3,891 $6,660,000 May-16 $1,712 - Undisclosed Undisclosed

15 Jets Ct Melbourne Airport VIC 10,642 $6,500,000 Nov-15 $611 8.00% Charter Hall Undisclosed

11 Monterey Rd Dandenong South VIC 6,250 $6,400,000 Jun-16 $1,024 - Undisclosed Undisclosed

38 Thistlethwaite St South Melbourne VIC 1,055 $6,152,640 Jul-15 $5,832 - Unds Undisclosed

Australian Sheepskin & Hide, 696 Geelong Rd

Brooklyn VIC - $6,100,000 Oct-15 - - Undisclosed APGF

197-205 Boundary Rd Laverton North VIC 7,462 $6,000,000 Aug-15 $804 - Undisclosed Shanghai Forte Land

42 Northey Rd Lynbrook VIC 4,204 $6,000,000 Nov-15 $1,427 8.20% Undisclosed Mair Group

55-65 Sky Rd Tullamarine VIC 10,040 $5,901,569 Jun-16 $588 6.83% Charter Hall Propertylink

101 Tope St South Melbourne VIC - $5,800,000 Aug-15 - - Graham Berry Undisclosed

2-10 Gaine Rd Dandenong South VIC 5,225 $5,600,000 Jun-16 $1,072 - Crabtrees Real Estate

Hume Doors & Timber

209-219 & 221 Barry Rd, CAMPBELLFIELD Campbellfield VIC 14,092 $5,550,000 Feb-16 $394 - TNT Australia

Pty Ltd

Filiz Property Investment Pty

Ltd

55-61 Villas Rd Dandenong South VIC 4,561 $5,500,000 Jul-15 $1,206 - Undisclosed Undisclosed

13 Rocco Dr Scoresby VIC 5,180 $5,300,000 Sep-15 $1,023 - Youellco Undisclosed

242 Edwardes St Reservoir VIC 2,363 $5,271,000 May-16 $2,231 Undisclosed Undisclosed

2049 Princes Hwy Clayton VIC 3,332 $5,200,000 Sep-15 $1,561 Sortino Family Undisclosed

275-315 Kingston Rd Clarinda VIC 1,325 $5,000,000 Jun-16 $3,774 14.40% Alex Fraser Charter Hall

VICTORIA TOTAL $2.67 billion



DATE


INITIAL YIELD (%)

VENDOR PURCHASER

VICTORIA

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

40

INDUSTRIAL EDITION


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

QUEENSLAND

95 Gilmore Rd Berrinba QLD 41,318 $81,306,197 Sep-15 $1,968 6.18%GIC (Govt of


Ascendas

82 Noosa St Heathwood QLD 38,000 $69,921,315 Sep-15 $1,840 6.57%GIC (Govt of


Ascendas

1-5 Bishop Dr Port of Brisbane QLD 90,000 $60,000,000 Mar-16 $667 8.76% IPS LogisticsLogos Property

Services JV Partners Group

Linfox Warehouse, 62 Stradbroke St Heathwood QLD 24,811 $37,983,192 Sep-15 $1,531 7.40%



99 Radius Dr Larapinta QLD 14,543 $30,729,108 Sep-15 $2,113 6.00%GIC (Govt of


Ascendas

92 Sandstone Pl Parkinson QLD 13,738 $30,326,103 Sep-15 $2,207 6.26%GIC (Govt of


Ascendas

77 Logistics Pl Larapinta QLD 13,766 $30,124,601 Sep-15 $2,188 7.00%GIC (Govt of


Ascendas

Spotless Warehouse, 2666 Ipswich Rd Oxley QLD 11,656 $29,450,000 Dec-15 $2,527 7.00% Cambooya Pty

Ltd

The Trust Company

Australia Ltd

1 Lahrs Rd Ormeau QLD 9,590 $29,000,000 Dec-15 $3,024 7.01% Panak Pty LtdPropertylink OBO SEDCO

Capital

17 Sugarmill Rd Meeandah QLD 14,244 $28,250,000 Jun-16 $1,983 7.78% Charter Hall Propertylink

17 Sugarmill Rd Meeandah QLD 14,244 $28,250,000 Jun-16 $1,983 7.60% Charter Hall Propertlylink

203 Viking Dr Wacol QLD 13,363 $27,000,000 Oct-15 $2,021 7.02% One Funds Management Ltd

Cache Logistics Trust

7 Brandl St Eight Mile Plains QLD 5,264 $25,500,000 Apr-16 $4,844 7.60% Industria REIT Confidential

Kimberly Clark Warehouse Parkinson QLD 9,260 $24,180,282 Sep-15 $2,611 6.29%



76 Quinns Hill Rd W Stapylton QLD 12,607 $23,000,000 Feb-16 $1,824 7.10%Stapyton Rd

Developments Pty Ltd

Augusta Funds Management

1937 Ipswich Rd Rocklea QLD 14,364 $22,057,257 Nov-15 $1,536 7.71% TyreMax Fife Capital

Acacia Gate, 29-41 Lysaght St Acacia Ridge QLD 18,488 $21,702,686 Sep-15 $1,174 8.95%

DEXUS Wholesale

Property Fund

AMP Capital Investors

CMC Coil Steels, 85 Radius Dr Larapinta QLD 10,054 $18,150,000 Aug-15 $1,805 7.82% C&H Properties

(QLD) (Pty) Ltd

Investec Australia

Property Fund

92-116 Holt St Pinkenba QLD 14,494 $16,400,000 Aug-15 $1,132 - GPT Funds Management 2 Nafru Pty Ltd

127 Riawena Rd Salisbury QLD 18,989 $14,860,000 Jan-16 $783 8.81%* TNT Express Motorama

75 Ebbern St Oxley QLD 7,110 $14,500,000 Dec-15 $2,039 8.34% QFFS Trust for Public Land

102 Trade St Lytton QLD 14,479 $14,500,000 Feb-16 $1,001 8.34%* Frasers Property Fife Capital


QLD SALES

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

41

30 Union Circuit Yatala QLD 6,991 $11,862,000 Nov-15 $1,697 11.88% Taperslee Pty. Ltd.

Guardian AIT Pty Ltd.

775 Kingsford Smith Dr Eagle Farm QLD 5,503 $11,150,000 Dec-15 $1,305 7.17% Private Investor Private Investor

373 Sherbrooke Rd Willawong QLD 3,415 $10,660,000 Jul-15 $3,122 7.14% Charter Hall Augusta Funds Management

48 Archerfield Rd Oxley QLD 12,000 $10,525,000 Mar-16 $877 7.01%* Undisclosed Pellicano Group

141 Boundary Rd Oxley QLD 7,818 $10,400,000 Dec-15 $1,330 8.54% Monachcombe Pty Ltd

Sentinel Property Group

223 Viking Dr Wacol QLD 6,276 $9,575,000 Dec-15 $1,526 7.02% Muzzie Pty Ltd Cache Logistics Trust

33 Queensport Rd Murarrie QLD 12,730 $9,100,000 Sep-15 $715 10.70% Undisclosed GM Property

37 Eagleview Pl Eagle Farm QLD 3,917 $9,100,000 Oct-15 $2,323 8.01% Private Investor Private Investor

Westbeams, 3-9 Bult Dr Brendale QLD 3,245 $8,500,000 Nov-15 $2,619 8.27% Vynian Pty Ltd Private Investor

141a Boundary Rd Oxley QLD 3,141 $8,215,000 Nov-15 $2,615 7.87% Guardian AIT Pty Ltd

Pipeclay Lawson

68 Harries Rd Coorparoo QLD 5,977 $7,800,000 Jul-15 $1,305 - Avanti Nominees Pty Ltd

Conmus Enterprises

Pty Ltd

SFL Piletech, 55 Blanck St Ormeau QLD 5,020 $7,600,000 Feb-16 $1,514 - A.E.L. Holdings

Australia Pty LtdMeap Property

Pty Ltd

37-39 Interlink Ct Paget QLD 4,671 $6,500,000 May-16 $1,392 10.00% A.T.B Morton Pty

LimitedSentinel

Property Group

Vinidex, 19 Valente Cl Chermside QLD 6,800 $6,500,000 Dec-15 $956 9.40% Peter CavanaghThe Foley

Superannuation Fund

117 Formation St Wacol QLD 2,927 $6,500,000 Sep-15 $2,221 VP Sale Private Haulmark Manufacturing

26 Production Ave Molendinar QLD 6,696 $6,450,000 Apr-16 $963 -

Perpetual Trustee

Company Limited

Gazal Properties Pty Ltd ATF The Gazal Properties

Trust

7 Viola Pl Brisbane QLD 6,549 $6,150,929 Jun-16 $939 14.05% Charter Hall Propertylink

14 Counihan Seventeen Mile Rocks QLD 4,824 $5,724,000 Sep-15 $1,187 8.01% Private Private

QUEENSLAND TOTAL $920 million



DATE


INITIAL YIELD (%)

VENDOR PURCHASER

QUEENSLAND

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

42

INDUSTRIAL EDITION


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

WESTERN AUSTRALIA

Stockyard Industrial Estate, 22 Stockyard Lane

Hazelmere WA 100,754 $240,000,000 Jan-16 $2,382 6.95% Goodman Group Charter Hall

Yagine Cl Hazelmere WA 22,927 $55,600,000 Sep-15 $2,425 7.80% Centurion Logistics Charter Hall

35 Baile Rd Canning Vale WA 20,895 $38,789,202 Sep-15 $1,856 6.80%GIC (Govt of


Ascendas

1 Sudlow Rd Bibra Lake WA 33,595 $35,000,000 Aug-15 $1,042 VP Sale Aspen Group Ltd (WA)

Pickles Auction Pty Ltd

Bradken, 170 Railway Parade Bassendean WA 31,700 $32,780,000 Jul-15 $1,034 8.50% Bradken

Manufacturing Charter Hall

CTI Logistics, 54 Miguel Rd Bibra Lake WA 22,358 $26,000,000 Oct-15 $1,163 7.94% CTI Logistics IAPF

15 Ashby Cl Forrestfield WA 11,324 $18,610,000 Apr-16 $1,643 7.42% Dazzlemore Pty Ltd

Perdaman Industrial Properties

103 - 109 West Ave Edinburgh WA 5,980 $15,250,000 Jun-16 $2,550 8.87% Charter Hall Propertylink

215-217 Bannister Rd Canning Vale WA 6,547 $9,500,000 Jan-16 $1,451 -

Fairbury Pty Ltd JV GAC

Superannuation Fund Pty Ltd

Lanaba Pty Ltd

172 Kewdale Rd Belmont WA 7,768 $8,500,000 May-16 $1,094 5.10% Cacosa Pty Ltd Bayswater Car

Rental Pty Ltd

54-56 Banksia Rd Welshpool WA 6,560 $7,500,000 May-16 $1,143 9.35% Private

Portzane Commercial

Property Pty Ltd

Otis and Chubb HQ, 120 Cutler Rd Jandakot WA 4,652 $7,380,000 Nov-15 $1,586 7.37% United

TechnologiesPPP Projects

Pty Ltd

23 Office Rd Kwinana Beach WA 9,285 $6,050,000 Jan-16 $652 -

Dongbu Hannong

Australia & Valefox Pty Ltd

Summit Rural WA Pty Ltd

WESTERN AUSTRALIA TOTAL $463.4 million


WA SALES

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

43


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

SOUTH AUSTRALIA

Kidman Park, 404-450 Findon Rd Kidman Park SA 58,794 $57,251,000 Dec-15 $974 8.99% Cheap as Chips Cache Logistics

Trust

33-37 Port Wakefield Rd Gepps Cross SA 31114 $46,000,000 Sep-15 $1,478 8.16% Goodman Group Charter Hall

523 Grand Jct Rd Wingfield SA 18864 $21,000,000 Aug-15 $1,113 9.32% Sowthwing Pty

LtdAustralia Post

Corp

3 Pope St Beverley SA 14,159 $20,815,424 Jul-15 $1,470 7.72% Australand Growthpoint (AUS)

Wingfield Distribution Centre, 8 Johansson Rd

Wingfield SA 10,033 $11,900,000 Nov-15 $1,186 8.37% Goodman Group Prime West

54 Jose St Melrose Park SA 12,766 $7,200,000 Jul-15 $564 8.40% Private Jose St Nominees

82-94 Grand Trunkway Gillman SA 17594 $7,000,000 Oct-15 $398 - Private Private

28-30 Diagonal Rd Pooraka SA 3,975 $6,200,000 Dec-15 $1,560 10.80% Bigolino No 2 Pty Ltd

T & C Properties

(Pooraka) Pty.

53 Scotland Rd Adelaide SA 10,669 $5,850,000 Oct-15 $548 - Private Private

101 Port wakefield Rd Cavan SA 12113 $5,550,000 Aug-15 $458 10.77% Gerard Family Shahin Family

SOUTH AUSTRALIA TOTAL $204 million


SA SALES

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

44

INDUSTRIAL EDITION


DATE


INITIAL YIELD (%)

VENDOR PURCHASER

NORTHERN TERRITORY

Toll Darwin, 21 O'Sullivan Circuit East Arm NT 27,700 $72,500,000 Dec-15 $2,617 - Toll Express Challenger

NORTHERN TERRITORY TOTAL $72.5 million

AUSTRALIAN CAPITAL TERRITORY

170 Melrose Dr Phillip ACT 1,734 $9,000,000 Apr-16 $5,190 - Undisclosed Undisclosed

149 Flemington Rd Mitchell ACT 3,225 6,550,000 Jun-16 $2,031 7.30% Undisclosed Undisclosed

11 Sheppard St Hume ACT 4,352 $5,750,000 Sep-15 $1,321 - Undisclosed Undisclosed

AUSTRALIAN CAPITAL TERRITORY TOTAL $21.30 million


NT SALES

ACT SALES

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

45

INDUSTRIAL EXPERTS

MALCOM TYSONManaging Director Industrial+61 412 248 883

MICHAEL CROMBIENational Director Industrial+61 412 903 063

SYDNEY SOUTH

GAVIN BISHOPNational Director Industrial+61 401 146 051

ROGER MILLERNational Director Industrial+61 400 044 011

SYDNEY WEST

JON ORSBORNDirector In Charge+61 401 711 841

KELLIE TATTERSALLDirector+61 412 248 883

SYDNEY SOUTH WEST

ANTHONY MYLOTTNational Director+61 416 259 075

VALUATIONS

SASANKA LIYANAGEResearch Analyst+61 411 534 522

RESEARCH

SYDNEY NORTH

TONY IULIANONational Director, Industrial+61 412 992 83

BEN MCCALLUMNational Director+61 401 120 860

NICK SAUNDERSDirector, Industrial+61 407 542 210

JUSTIN FRIEDDirector, Industrial+61 412 070 858

MELBOURNE WEST VALUATIONSMELBOURNE CBD MELBOURNE EAST

2015

/16

Capi

tal M

arke

ts In

vest

men

t Rev

iew

46

INDUSTRIAL EDITION

NSW

National

VIC

PAT CAVANAGHDirector, Industrial+61 415 261 339

TRENT CROPLEYAssociate Director+61 417 791 888

QLD

SA

SIMON BEIRNENational Director, Industrial+61 413 765 098

PAUL TIERNEYDirector, Industrial +61 401 145 028

MATTHEW FRAZER-RYANDirector, Industrial+61 431 963 943

MELISSA GOWDirector+61 419 325 000

BRISBANE GOLD COAST VALUATIONS

ADELAIDE VALUATIONS

WA

RAJ SINGHDirector, Industrial +61 434 650 853

JOHN DEL DOSSODirector+61 434 659 836

WAYNE CHORLEYDirector, Industrial Special Projects +61 434 659 840

PERTH VALUATIONS

NT

CRAIG INKSTERDirector, Commercial+61 414 550 705

TONY WESTDirector+61 409 422 458

DARWIN VALUATIONS

A Co

lliers

Inte

rnat

iona

l pub

licat

ion

47

Accelerating success.

Disclaimer: Colliers International does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. Colliers International will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. COPYRIGHT P 2016.Accelerating success.

capital markets investment review 2016 - industrial

Documents