The manager of Singapore-listed Mapletree Logistics Trust has agreed to spend A$105.0 million ($74.5 million) to add a distribution centre in Brisbane, Australia to the trust’s existing portfolio of logistics facilities, according to an announcement by the company to the Singapore stock exchange.
Mapletree Logistics Trust Management Limited, which manages the S$7.6 billion listed trust, is purchasing the 55,739 square metre (600,000 square foot) Coles Distribution Centre in the Brisbane suburb of Heathwood as the tenth Australian asset as the trust grows its holdings to 138 logistics properties.
The deal comes as regional and global warehouse investors step up competition for Australian logistics properties in anticipation of hastening growth of the ecommerce sector and continued expansion in demand for top grade distribution space.
A Facility With Room to Expand
“This acquisition will bring MLT’s portfolio in Australia to ten properties with an AUM of over S$600 million,” Ng Kiat, Chief Executive Officer of Mapletree Logistics Trust Management said in a statement. With a WALE (weighted adjusted lease expiration) of 4.3 years and fixed annual escalations, the acquisition will provide stable and growing income to our Unitholders.”
The single-storey facility is currently 100 percent occupied by Australian grocery chain Coles Supermarkets with the existing lease set to expire in January 2023, according to the statement. The property had been valued by Savills earlier this month at A$105 million, and at that price is expected to generate an initial net property income yield of 5.7 percent.
The existing warehouse occupies a 151,600 square metre freehold site which includes expansion land which could yield 19,000 square metres of additional gross floor area. The location along the Logan Motorway, provides the facility with direct access to the both central Brisbane some 28 kilometres away and the Port of Brisbane and Brisbane Airport.
While the statement did not identify the seller of the property, JLL’s industrial team in Queensland had been marketing the facility on the company’s website.
Industrial Stays Sexy in Oz
Mapletree Logistics Trust’s Brisbane acquisition came just under three months after its compatriots at Ascendas-Singbridge had made their own Queensland industrial deal.
In early August, the manager of Singapore-listed Ascendas REIT announced the acquisition of Cargo Business Park in Brisbane for A$33.5 million.
During this month, regional warehouse developer ESR expanded its logistics holdings across Australia, as the Warburg Pincus-backed startup won its $505 million battle to take control of Sydney-based real estate investment manager Propertylink,