Surge in investment sales delivers record-breaking year for Qld industrial market

Queensland has more than doubled its slice of the national total of industrial investment sales above $10 million, boosted by a record-breaking four transactions above $100 million.

Brisbane’s industrial investment market has had a record-breaking year and is expected to continue to gather momentum in 2020.

A POWERHOUSE surge in Queensland’s commercial property engine room – its industrial sector – over the past 12 months has delivered a billion-dollar investment bonanza.

New figures from JLL show the Sunshine State has more than doubled the size of its slice of the national total of industrial investment sales above $10 million.

Of the $3.69 billion of total investment across 89 sales recorded throughout Australia, the Queensland industrial sector accounted for $1.16 billion – or 31 per cent – across 22 deals.

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“This is the first time since 2015 that investment sales have eclipsed $1 billion in Queensland,” said JLL’s Queensland industrial director Gary Hyland.

By comparison, across 21 deals in 2018 Queensland recorded $491 million in industrial investment sales above $10 million – accounting for 15 per cent of the $3.2 billion in national sales across 109 transactions.

“2019 has been a record-breaking year for the Brisbane market with four investment sales above $100 million, which is another first,” Mr Hyland said.

JLL's national industrial investment sales chart for 2019.

The ‘big four’ transactions included:

* Centuria Property’s recent $211.8 million purchase of the Arnott’s Biscuits factory at 46 Robinson Rd, Virginia.

* Charter Hall’s $183.6 million acquisition of the Crestmead Distribution Centre at 105-137 Magnesium Drive, Crestmead.

*The $134.2 million sale of a half stake in the Coles cold storage facility at 99 Sandstone Place, Parkinson, to German wealth manager DWS.

* Charter Hall’s $102.5 million deal to secure an industrial asset at 40 Schneider Rd, Eagle Farm, occupied by the Brisbane City Council’s bus network terminal.

The Arnott’s Biscuits factory at 46 Robinson Rd, Virginia, that changed hands for $211.8 million.

“Brisbane is a core industrial hub now and not just seen as a satellite for Sydney and Melbourne,” Mt Hyland said.

JLL’s figures show the average yield across the Brisbane market tracked at 6.59 per cent, compared to New South Wales at 5.56 per cent and Victoria at 6.21 per cent.

“Our strong annual take up above 500,000sq m for the past three years (above the average 10-year take up) and dwindling land supply bodes well for the Brisbane industrial investment market … and we expect the strong investor interest to continue throughout 2020,” Mr Hyland said.

The Brisbane City Council bus network terminal at 40 Schneider Rd, Eagle Farm, that sold for $102.5 million.

According to Mark Clifford, Knight Frank’s Queensland joint head of industrial, Brisbane’s industrial sector has emerged as “one of the most active and highly sought after investment markets” in 2019.

“There has never been more interest in Brisbane’s industrial market, not just from private investors but institutional investors … and we expect the market will continue to gather momentum in 2020.”