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Australia’s largest industrial deal: GIC and Frasers Property Australia logistics portfolio sells for $1.073 billion

Ascendas Real Estate Investment Trust has been the successful buyer of the GIC/Frasers Property Portfolio.  The deal, worth $1.073 billion was brokered by Colliers International and JLL.

Widely considered to be the largest and highest quality industrial offering ever offered in the Australian market, the portfolio consisted of 26 prime, institutional grade logistics assets.  The sale was handled by Colliers International agents Malcom Tyson, Gavin Bishop, Tony Iuliano and Simon Beirne. 

“We were delighted to act on behalf of GIC in negotiating this landmark industrial deal,” said Malcom Tyson, Managing Director of Industrial at Colliers International.  “We have seen significant activity across several large industrial portfolios over the last 18 months, but this transaction is the largest of its type in Australian industrial history.  The strong result is a clear indication of the significant demand for high quality Australian industrial assets, from both local and offshore investors.  As the Australian industrial market moves from an industry founded on manufacturing, to an industry driven by the highest quality logistics and warehousing facilities, demand for Australian industrial assets will continue to be strong.”

“Offshore investors purchased $2.63 billion worth of Australian industrial property throughout the 2014/15 financial year, “ said Mr Iuliano.  “This was equivalent to 41% of all transactions for the sector over that period.  This deal is an indication that offshore institutional investors continue to see Australian industrial property as a sold investment option.”

gic-industrial-property-portfolio

Mr Bishop commented:  “REITS, super funds and sovereign wealth funds have all been active buyers in the industrial sector over the past 18 months.  Yields in the Australian industrial market are still more favourable than those of other international markets, so global buyers will continue to seek opportunities in this market.”

$6.45 billion in assets changed hands throughout FY 2014/2015, up 56% on the previous year.  The logistics and transport industries are the driving force in the sector at present, which is experiencing low vacancy and limited new supply.

“Logistics and transport are the driving force in the Australian industrial sector at present,” said Mr Beirne.  “As our retail sector continues to improve, there  will be an increasing requirement for quality industrial assets, particularly across the Australian eastern seaboard.“

The largest sale of 2014/15 financial year was the $253 million sale of the Coles Chilled Distribution Centre in Eastern Creek, brokered by Colliers International.  The sale of large scale industrial portfolios was another key theme seen in the sector throughout the year.

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