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Frasers Property Australia bags A$275m in new projects
FRASERS Property Australia - formerly known as Australand - has secured over A$275 million worth of new development projects over the last 12 months, said Frasers Centrepoint on Thursday.
The new projects are from across its national industrial and commercial platform, comprising 210,900 square metres. The total portfolio is currently valued at about A$2.4 billion.
Reini Otter, executive general manager, commercial and industrial, for Frasers Property Australia (Frasers Property), said: "The past year has been a phenomenal success for the industrial and commercial business. Frasers Property's ongoing release of land banks and integrated development model which offers a variety of property solutions has helped the business achieve these solid results."
The majority of the transactions were secured in Sydney and Melbourne with the remainder in Adelaide and Brisbane. Major pre-lease deals that have been secured within the last 12 months include Toshiba, Fisher and Paykel, Australian Geographic and Miele.
Said Mr Otter: "Several trends that have been witnessed in the past year including a strong compression in yield which has led to an increase in asset prices, particularly in the core logistics markets of Western Sydney, Melbourne's west and south-east markets as well as Brisbane's Trade Coast and the Logan Motorway corridor outside Brisbane.
"The scarcity of quality assets available on the market combined with the continued aggressive acquisitions by offshore funds has seen some owners sell and capitalise on the high prices overseas buyers are willing to pay for quality locations."
Within the next 12 months the commercial and industrial business has a development pipeline of 280,000 sq m to deliver assets valued at over A$400 million. Frasers Property is also looking to restock in its three main markets - Sydney, Melbourne and Brisbane - said the company.