The GPT Group (“GPT” or “Group”) today announced the completion of seven logistics developments, including three fund-through acquisitions. The completed developments add a combined total of $460 million of prime facilities to GPT’s growing Logistics portfolio, which now represents 28 per cent of the Group’s balance sheet.
GPT’s Chief Executive Officer, Bob Johnston, said: “Our Logistics portfolio continues to deliver strong results for the Group. We are making excellent progress with our developments, with an additional seven assets completed and four more scheduled to complete over the next 12 months. Ongoing structural tailwinds in the sector continue to drive tenant demand, low vacancy rates and strong market rental growth.”
The completed developments include a 10,700 square metre facility at 143 Foundation Road, Truganina, which is Australia’s first upfront embodied carbon neutral development certified by Climate Active and is 6 Star Green Star rated. At The Gateway Logistics Hub in Truganina, a further development was completed totaling 27,200 square metres, which is leased to Daikin and Nature’s Best. In the GPT QuadReal Logistics Trust (GQLT), a 70,100 square metre warehouse at Tarneit has reached completion and is occupied by e-commerce group VidaXL, while construction on the first stage at Keylink Estate, Keysborough, has finished with the completion of a 38,100 square metre facility.
These fully-leased developments reflect the demand for prime logistics facilities as the Melbourne market continues to benefit from a low vacancy rate of 1.1 per cent1 and high levels of demand from occupiers investing in the supply chain and a growing retail sector, underpinned by population growth.
In Brisbane, a 21,900 square metre warehouse has been delivered at Wembley Business Park, which is the Group’s fourth development in the precinct and is leased to JB-Hi-Fi and InterCentral Logistics. At 100 Metroplex Place, Wacol, a 17,100 square metre warehouse is complete, while at 18 Gorrick Court, Bundamba, a 12,500 square metre warehouse is finished, with both assets also owned in the GPT QuadReal Logistics Trust (GQLT). All three facilities are leased, as the Brisbane logistics market also continues to benefit from record-low vacancy of 0.5 per cent1.
The completion of these developments close out a busy year in the Group’s Logistics portfolio, with the addition of 197,600 square metres of prime facilities taking GPT’s total Logistics assets under management to $4.7 billion.
GPT’s Head of Logistics, Chris Davis, said: “The business case for occupiers to relocate into modern well-located facilities and invest in their supply chain remains compelling. We are continuing to see strong levels of tenant demand from retailers, wholesale trade and transport companies and as a result we expect vacancy to remain very low through 2023, setting the scene for strong rent growth.”
The Group is making good progress with its $1.9 billion development pipeline, with a further four developments also underway. In Melbourne, the second and final stage of GQLT’s Keylink Estate is due for imminent completion, with two of the three facilities now leased. The sixth and final stage of The Gateway Logistics Hub is also underway. In Brisbane, the Coulson Street, Wacol development is due for completion in the first half, followed by a facility at Apex Business Park, Bundamba in the second half of 2023.
On a combined basis, GPT’s projects to be completed this year represent 83,500 square metres of new logistics facilities.
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