ISPT to divest $250m in super prime assets

ISPT will bring three super prime assets to market in Sydney and Brisbane, in a move it says demonstrates its optimism in the Australian logistics sector.

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

"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," ISPT head of funds management Matthew Brown said.

"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."

The three properties in the portfolio are the located in Prestons, New South Wales, and Brendale and Narangba in Queensland.

CBRE executive director of logistics in APAC 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.

Meanwhile, JLL head of logistic and industrial - capital markets - Australia Ben Hegerty said investor demand for logistics and industrial assets exceeded office sector volumes for the second time in 15 years in 2023.

"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," Hegerty said.

"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."