Brisbane leads other cities in industrial deals for quarter
Brisbane’s industrial market is showing signs of life, as the market had the highest number of major industrial transactions in Australia during the second quarter of 2011, according to Savills. The deals combned generated just under $100 million.
The biggest deal was signed by Kimberly-Clark, the marketer of health and hygiene products, which paid $20 million for 13,738 square metres at 92 Sandstone Street, Parkinson at yield of 8.25%
K-mart’s $72 million investment in a 52,000-square-metre distribution centre in Sydney’s west was the biggest deal of the second quarter of 2011, according to Savills.
The retailer paid $1,394 per square metre for the warehouse at Lot 22 Wonderland Drive, Eastern Creek, with a yield of 7.96%
The deal accounted for nearly half of all the value of the five major transactions that occurred over the three-month period in Sydney, totalling $15o million.
Other notable deals included logistics and transport storage group General Carrying spending $24 million for a 24,000-square-metre space at 211 Topham Road, Smeaton Grange, 60 kilometres west of the Sydney CBD.
Figures compiled by Savills reveal that Melbourne maintained its reputation as the industrial investment hotspot, with nine major deals totalling $220 million.
An unnamed investor paid $70 million for a 75,348-square-metre warehouse on Dohertys Road, in the industrial suburb of Truganina in Melbourne’s west.
The investor paid $926 per square metres at a yield of 8%.
Other big brands to move buy industrial space in Melbourne include confectionery and beverage group Cadbury, which spent $30 million on a 27,000-square-metre chocolate factory at 39 Bennet Street, Dandenong South and ASX-listed clothing manufacturer Pacific Brands, which spent $35 million for a 40,000-square-metre warehouse. Pacific Brands spent $926 per square metre at a yield of 8%.
Investors steered clear of the Perth industrial market, with six major transactions generating just $16 million of deals over the June quarter.
Mazda secured the biggest leasing deal of the quarter, securing 20,000 square metres of warehouse space at 880 Cooper Street, in Somerton, 21 kilometres north of Melbourne at $70 per square metre.
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