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Trilogy Industrial Property Trust growth highlights soaring demand
Specialist property-based fund manager, Trilogy Funds, added another two properties to its industrial portfolio in June and July, with a third scheduled to settle in August, highlighting the soaring demand and underlying strength of industrial property across Australia.
As part of the growing Trilogy Industrial Property Trust the fund manager finalised the purchase of a new 1.95-hectare warehouse and office property in the emerging Toowoomba Trade Gateway precinct for $8.64 million last month and signed a contract to purchase a 2.1-hectare industrial warehouse and distribution facility in Coolum Beach for $20.05 million which is due to settle at the end of August.
This adds to the Industrial Trust’s June acquisition of an industrial warehouse complex in southeast Melbourne on a 1.3-hectare site for $10.02 million.
Trilogy Funds co-founder and Managing Director Philip Ryan said the Australian industrial property sector continued to be one of the most sought-after property asset classes, supported by underlying fundamentals of robust demand and modest supply.
“Several factors have come together to create soaring demand for industrial property across Australia,” Mr Ryan said.
“Industrial space was already in high demand in many advanced economies before the COVID-19 pandemic, but the accelerated growth of e-commerce and restructuring of supply chains that has occurred since its emergence have caused a further sharp spike in requirements for warehousing and logistics space.
“At the same time, companies looking to take advantage of historically low interest rates to acquire their own industrial premises rather than renting, and government-driven infrastructure developments are driving up demand in key strategic locations.
“We expect demand for industrial property in Australia will continue to rise, particularly as institutional investors gear their strategies toward greater exposure in the sector and as investors who have traditionally relied on residential property and the share market to drive their investment portfolios and retirement strategies are increasingly turning to the potential of higher yields from industrial real estate.”
In addition to the potential for competitive yields, the strong appetite for investments in the industrial property sector was driven by its long-term capital growth prospects.
“Low vacancies are translating into strong capital appreciation, with industrial land prices in west Melbourne for example more than doubling over the past four years,” Mr Ryan said.
“Upward momentum in prices locally is also being buoyed by strong foreign demand for Australian commercial property, with billions of dollars flowing into the sector from foreign investors in Australian industrial assets.”
The Trilogy Industrial Property Trust’s strategy remains focused on finding quality investment properties that have tenants of good convent with the option to value-add through expansion works if possible.
Note: Trilogy is an educational partner of this masthead, all views expressed in this article are their own.
Specialist property-based fund manager, Trilogy Funds, added another two properties to its industrial portfolio in June and July, with a third scheduled to settle in August, highlighting the soaring demand and underlying strength of industrial property across Australia.
As part of the growing Trilogy Industrial Property Trust the fund manager finalised the purchase of a new 1.95-hectare warehouse and office property in the emerging Toowoomba Trade Gateway precinct for $8.64 million last month and signed a contract to purchase a 2.1-hectare industrial warehouse and distribution facility in Coolum Beach for $20.05 million which is due to settle at the end of August.
This adds to the Industrial Trust’s June acquisition of an industrial warehouse complex in southeast Melbourne on a 1.3-hectare site for $10.02 million.
Trilogy Funds co-founder and Managing Director Philip Ryan said the Australian industrial property sector continued to be one of the most sought-after property asset classes, supported by underlying fundamentals of robust demand and modest supply.
“Several factors have come together to create soaring demand for industrial property across Australia,” Mr Ryan said.
“Industrial space was already in high demand in many advanced economies before the COVID-19 pandemic, but the accelerated growth of e-commerce and restructuring of supply chains that has occurred since its emergence have caused a further sharp spike in requirements for warehousing and logistics space.
“At the same time, companies looking to take advantage of historically low interest rates to acquire their own industrial premises rather than renting, and government-driven infrastructure developments are driving up demand in key strategic locations.
“We expect demand for industrial property in Australia will continue to rise, particularly as institutional investors gear their strategies toward greater exposure in the sector and as investors who have traditionally relied on residential property and the share market to drive their investment portfolios and retirement strategies are increasingly turning to the potential of higher yields from industrial real estate.”
In addition to the potential for competitive yields, the strong appetite for investments in the industrial property sector was driven by its long-term capital growth prospects.
“Low vacancies are translating into strong capital appreciation, with industrial land prices in west Melbourne for example more than doubling over the past four years,” Mr Ryan said.
“Upward momentum in prices locally is also being buoyed by strong foreign demand for Australian commercial property, with billions of dollars flowing into the sector from foreign investors in Australian industrial assets.”
The Trilogy Industrial Property Trust’s strategy remains focused on finding quality investment properties that have tenants of good convent with the option to value-add through expansion works if possible.
Note: Trilogy is an educational partner of this masthead, all views expressed in this article are their own.
