Portfolios dominate record Victoria industrial sales: Savills Research

Portfolio sales of Victorian industrial property have dominated a record year for the year to March, seeing a near $600 million increase on the long term average, according to Savills research.

The industrial property sales, which totalled more than $2.145 billion, was heavily up on the long term average with the $970 million worth of national portfolio sales.

Savills Associate Director Research, Monica Mondkar cited the likes of Altis, Blackstone, Charter Hall, Duestche Australia, Mapletree and Propertylink were some of the major sales.

44 percent of reported stock sold went to funds, while owner-occupiers record the most transactions with 28 purchases.

Owner-occupiers were also the most active vendors with 35 per cent of stock reported sold.

The North West region had the most transactions by value with around $845 million in sales or 18 per cent more than the five year average of $715 million.

In the South East sales of $657 million were also up with a 21 per cent rise on the five year average of $517 million.

Two of the biggest transactions came from Charter Hall, who spent $215 million on the Woolworths’ Distribution Centre at Portlink Industrial Estate and a further $102.5 million of Coles Distribution Centre in Truganina.

Lynton Williams, Victorian Industrial Director, said he expected the industrial investment market to continue to provide strong results over the next 12 months and that sustained competition would continue to put downward pressure on yields.

"The industrial investment market is very much a story about yield.

"Why would you not consider a prime industrial asset which is going to deliver you a six to seven per cent plus yield?"