KM Property Funds, PGIM Real Estate team up for Yatala play

Local firm KM Property Funds and international giant PGIM Real Estate have snapped up a prime industrial and logistics estate in the Queensland centre of Yatala.

The Yatala site is situated between Brisbane and the Gold Coast, with direct access to the M1 Pacific Motorway.

Local firm KM Property Funds and international giant PGIM Real Estate have snapped up a prime industrial and logistics ­estate in the Queensland centre of Yatala for just over $100m.

The estate was acquired off-market by a joint venture between a PGIM Real Estate strategy and a KM Property Funds managed private fund from Stockland.

The deal was struck off-market via Nick Evans and Gavin Bishop of Colliers and Jack Kelliher and Ben Hegerty of JLL.

Sitting at 14 Dixon Street, Yatala, the estate is centrally ­located between Brisbane and the Gold Coast and benefits from direct access to the M1 Pacific Motorway.

This transaction is KM Property Fund’s second industrial acquisition with PGIM Real Estate in just nine months, highlighting their appetite for high-quality industrial investment opportunities in Australia.

KM Property Funds partner Nick Crockett said the firm would “continue to build our ­national industrial operating partner capability and are delighted to once again partner with PGIM Real Estate on this exciting transaction”.

PGIM Real Estate head of Australia Steve Bulloch said the manager liked the prospects for the sub-market and the high-quality, multi-tenanted asset. “The partnership with KM Property Funds on this acquisition aligns with our thesis of targeting high-quality assets with rental reversion potential that will be attractive to core capital investors in the future,” he said.

The estate comprises four freestanding warehouses spanning 43,572sq m and a large site area of 9.6ha built between 2019 and 2023.

Currently fully leased with a weighted average lease expiry of 4.7 years, the passing income is well below market, presenting significant reversionary upside.

KM Property Funds partner, industrial Investments, Ryan Korda, reaffirmed the positive outlook of the industrial property market in Australia. “The transaction underscores the attractiveness of quality industrial assets, driven by robust population growth, increasingly limited availability of zoned land, strong demand from occupiers and strategic infrastructure investments by the state government,” he said.

“We are particularly excited about the Yatala micro-location due to its proximity to both Brisbane and the Gold Coast, which will continue to capitalise on the diverse occupier pool and low vacancy rate. The accommodation itself is best in class with ideal tenancy sizes and excellent truck loading, which is a credit to Stockland and their development team.”