ISPT to divest three super prime industrial and logistics assets

Leading property fund manager ISPT, the owner and operator of a portfolio of 140 properties across Australia valued at $21 billion, is set to demonstrate their optimism in the Australian logistics sector by bringing three super prime assets to market in Sydney and Brisbane.

JLL and CBRE have been appointed to market the assets with an expected price of more than $250 million.

Head of Funds Management at ISPT, Matthew Brown said, “The sale process is a part of our Core Fund portfolio curation strategy which includes selective recycling of capital into further develop-to-core projects within our extensive logistics development pipeline. 

“With the focus on industrial and logistics assets from an unprecedented number of global and onshore groups, this portfolio showcases prime locations, modern infrastructure, and strong tenant profiles, all contributing to attractive rental yields and long-term stability,” he said.

Executive Director of Logistics in APAC for CBRE, Chris O’Brien said the ISPT portfolio presents an array of investment opportunities with varied strategies and risk profiles, offering short-term upside through rental reversion and asset optimisation, complemented by long-term leases for cutting-edge logistics assets. 

"These properties, located in crucial logistics hubs, are in high demand and represent compelling investment opportunity for local and international investors,” he said.

The properties in the portfolio are:

With a 33, 644 sqm of gross leasable area (GLA) on a 6.1-hectare site the building offers a modern facility developed by ISPT in 2022. The property is leased to Invenco, Intercentral Logistics & Fieldturf Australia with 7.2 year WALE.

Offering a GLA of 31,738 sqm on a 9.7-hectare site, the property is leased to VIP Plastic Packaging & Modern Star with a 3.7 year WALE.

Offering a GLA of 34,382 sqm on a 10-hectare site, the property is leased to Bunnings, Apex Building Products, Cleanaway, Liquid Specialty Beverages, Avante, Merlin Marine & Leisure, and T-Pac Lumber offering a 4.9 year WALE.

JLL Head of Logistics & Industrial - Capital Markets – Australia Ben Hegerty said, “Investor demand for logistics and industrial assets in 2023 exceeded office sector volumes for the second time in 15 years, with industrial representing 34 per cent of total activity last year, up from 29 per cent in 2022. 

“There is no doubt rental growth has been an important incentive for developers to dust off their plans, but it has also been important for investors as it has created strong positive rental reversionary potential in many markets. 

“We are observing a huge wave of capital searching for logistics and Industrial (L&I) product, driven by an increased understanding of the long-term structural tailwinds driving growth in the sector and with forecast stability in debt markets.

“With returning competitive tension and narrowing of ‘bid to ask’ spreads, we are likely to see an even higher levels of transaction volumes in 2024 and beyond,” said Mr Hegerty. 

JLL Research’s ‘Industrial Outlook 2024’ found that the logistics and industrial sector recorded $6.2 billion in direct property transaction volumes in 2023, slightly ahead of the 15-year average of $5.7 billion. It found that since the trough in values in 2009, industrial asset values had nearly tripled, increasing by 288 per cent.