Savills reap $870 million in industrial property sales to December 2015
Nearly $870 million worth of reported industrial property transactions (>$2m) were recorded by Savills in the 12 months to December 2015, down from $913 million in the previous year, and up on the five-year average $651 million.
The hunt continues by investors for prime assets encouraged by the returns that property offers in the current climate, however, well located land is also eagerly sought as developers return to the market.
The highlight of the year was a $1.073 billion purchase of the GIC portfolio by Singapore-based Ascendas. The portfolio included assets from Victoria, New South Wales and Brisbane. There were seven Brisbane properties included in the deal amounting to $317.2 million.
In another unconfirmed deal, Logos Property Group secured 246,000 square metre of land at Heathwood on the Logan Motorway with intention to develop a premium logistics estate.
Overall, industrial sales topped $1 billion in the 12 months to December 2015, however Savills only includes sales over $2 million in their charts and reporting.
Nevertheless, it is interesting to note strength of the under $2 million purchases at around $161 million for the year which would be mainly small owner occupiers and land sales which says a lot for the confidence of small businesses and underpins future industrial growth.
