Buoyant industrial sector draws in $2b
The industrial sector is proving to be an attractive proposition for investors with more than $2 billion poured in over the past few months from around the world.
Goodman Group has raised €550 million ($777 million) of new equity in the past few months, completing an equity raising process that received total demand of more than €900 million ($1.27 billion).
Goodman chief executive Greg Goodman said most of the equity was raised in Europe, via a rights issue to existing investors, with additional equity raised in response to the strong demand from new investors.
He said to facilitate the excess demand, Goodman Group will sell down part of its holding in Goodman European Logistics Fund (GELF), which will result in an investment of about 20 per cent.
In Sydney the DEXUS Wholesale Property Fund (DWPF) has acquired 4 Inglis Road, Ingleburn, for $34.35 million. The fund has raised $823 million of equity over the past 12 months. The Ingleburn property, a 43,442-square-metre industrial distribution facility, is in Sydney's south-west industrial corridor, 32 kilometres from Port Botany and 43 kilometres from the central business district.
Fund manager Graham Pearson said the property fitted DWPF's industrial strategy of building a high-quality diversified industrial portfolio in key markets throughout the eastern seaboard.
Meanwhile, new research from Colliers International on the global industrial market shows Australia continues to perform comparatively well in the international arena.
"The Australian industrial market continues to offer world-beating yields and prospects of steady, stable rental growth, which are features attracting REITs, syndicates and private investors to the industrial precincts of Australia - particularly Sydney and Melbourne West," Colliers' managing director of industrial Malcom Tyson said.
Leasing and sales related to the transport and logistics industry is still driving demand in Melbourne's northern and western precincts, thanks to supply chains stretching from the airport and Port of Melbourne, the report said.