Speaking with one of the fund managers Goodman Group (GMG) and interesting to hear his take on the industrial property market. Goodman is the dominant domestic player for industrial property and has the lions share of tier 1 industrial assets. These include logistics facilities for the likes of Wesfarmers, LinFox, DHL etc Yields on industrial property remain high at 8% as relatively few transactions in the space mean that valuers have not yet upgraded valuations on commercial properties (as they have around the world). The situation is creating strong demand from offshore investors. The other interesting point was that the rezoning of industrial to residential is providing Goodman with some stellar returns. A recent transaction in Mascot saw an asset booked at $25mil sell to a property developer for $100mil purely as a result of the rezoning process. Interesting to note Goodman sits with plenty of liquidity available (VIEW LINK)
I have 13 years experience in equity markets and financial media. In 2013 I Co Founded, Livewire Markets with Tom McKay. Our vision is to be the #1 source of investment ideas in Australia. Opinions expressed are my own.