Buoyant industrial sector draws in $2b
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.
Frequently Asked Questions about this Article…
The article reports that more than $2 billion has been poured into the industrial sector over the past few months from investors around the world, reflecting strong global interest in industrial real estate.
Goodman Group raised €550 million (about $777 million) of new equity in recent months, in a process that attracted total demand of more than €900 million (around $1.27 billion). Most of the equity was raised in Europe via a rights issue to existing investors, with additional allocations to new investors.
To accommodate excess demand from the equity raising, Goodman Group will sell down part of its holding in the Goodman European Logistics Fund (GELF). That sale will result in Goodman having an investment of about 20% in GELF, according to the article.
DWPF acquired 4 Inglis Road, Ingleburn, for $34.35 million. The site is a 43,442-square-metre industrial distribution facility in Sydney’s south-west industrial corridor, about 32 km from Port Botany and 43 km from the CBD. The acquisition fits DWPF’s strategy of building a high-quality, diversified industrial portfolio across key eastern seaboard markets.
The article states DWPF has raised $823 million of equity over the past 12 months, reflecting strong capital flows into industrial-focused funds.
Colliers’ research highlights that the Australian industrial market offers strong yields and prospects of steady, stable rental growth. These features are attracting REITs, syndicates and private investors—particularly in Sydney and Melbourne West, according to Colliers’ managing director of industrial Malcom Tyson.
Leasing and sales related to the transport and logistics industry are driving demand in Melbourne’s northern and western precincts. The report attributes this to supply chains stretching from the airport and the Port of Melbourne.
The article indicates the industrial sector is currently an attractive proposition—with large capital inflows, fund-level acquisitions like DWPF’s purchase in Ingleburn, and positive market research from Colliers pointing to strong yields and steady rental growth. For everyday investors, this suggests growing investor interest and activity in industrial REITs, syndicates and funds, though the article itself reports market facts rather than investment advice.
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