Adelaide industrial research forecast report   second half 2012
 

Adelaide industrial research forecast report second half 2012

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    Adelaide industrial research forecast report   second half 2012 Adelaide industrial research forecast report second half 2012 Document Transcript

    • SECOND HALF 2012 | INDUSTRIALResearch & Forecast ReportADELAIDE INDUSTRIAL Market Consolidates for Expansion in 2013 Overall more than 200,000m² of industrial floor space has been leased across Adelaide’s industrial markets in 2012. Tenant enquiry has been solid throughout the year and the Northern markets continue to be the most popular. Almost 80% of all leasing transactions this year have occurred in the Inner and Outer North. Generally rents are stable and incentives are holding.31 Dunorlan Road, Edwardstown Adelaide’s pre-lease market remains active. Close to 50,000m² has been pre-leased this year andBuilt less than a year ago, the property is there are a number of tenant requirements yet to be fulfilled. Recent pre-lease commitments includeimmaculately presented with modern features Cameron Interstate, Electrolux, Global Pumps Inc, Spotless Group and Australian Independent Glass.providing significant corporate appeal. Considereda Premium graded facility and the last remaining of Year to date the total value of transactions is estimated to be $180 million. Almost 45% of thesethis quality available to lease in this precinct, this transactions occurred in the Inner Northern precinct. Major investment sale activity ($5M+) has alsohigh clearance warehouse/showroom and corporate improved on 2011 and transactional activity in the lower price bracket remains steady. Owneroffice provides approximately 690m². occupiers and self-managed super funds are increasingly active in this segment. Prime market yields have stabilised and are now holding firm between 8.0% and 8.5%. Largely thisMarket Indicators Forecast - 6 months has been driven by the sales of some significant properties in the Outer North, including properties leased to Nick Scali on a yield of 8.0%, Kimberly-Clark on a yield of 8.6% and Rocla on a yield of Overall Performance 8.0%. These sales together with the sale of 244 Eastern Parade at Gillman (CHEP) on a yield of New Supply 8.3% point towards Prime yields compressing at least 25 basis points on 2011 and suggest 2013 will also benefit. Tenant Demand Incentives ADELAIDE INDUSTRIAL MARKET INDICATORS Average Net Face Rents / Region Grade Face Rents Average Average Capital Average Average Incentives Values ($/m2) Market Yield* Land Values ($/m2pa) Capital Values / Low High Low High Low High Low High Low High Yields / Outer Prime $85 $110 10% 20% $900 $1,300 8.00% 9.00% $50 $100 North Secondary $50 $65 10% 20% $500 $800 9.00% 9.75% land values Inner Prime $100 $145 10% 20% $1,400 $1,900 7.75% 8.50% North $130 $250 Secondary $65 $90 10% 20% $900 $1,300 8.50% 9.50%Key Highlights Prime $110 $170 0% 15% $1,500 $2,200 6.75% 7.25% Inner• Year to date 200,000m² of industrial floor West $400 $500 Secondary $65 $110 10% 20% $1,100 $1,500 7.50% 8.50% space has been leased. Inner Prime $105 $150 10% 15% $1,500 $1,950 6.75% 7.75%• The Inner North continues to dominate South $380 $500 the majority leasing transactional activity. Secondary $65 $100 10% 15% $900 $1,400 7.75% 9.00%• Prime market yields are between 8.0% Outer Prime $70 $90 10% 15% $1,000 $1,200 9.00% 9.75% $80 $135 and 8.5%. South Secondary $40 $85 10% 15% $550 $900 9.75% 10.50% Prime $120 $180 0% 5% $2,000 $3,000 6.50% 7.50% East $700 $1,000 Secondary $65 $110 0% 5% $1,500 $2,000 7.50% 8.25% * Equivalent Reversionary Yield Data correct as of Q3 2012 Source: Colliers International Researchwww.colliers.com.au/research
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaide Economic Update SOLID NATIONAL ECONOMIC GROWTH The June Quarter 2012 Australian Bureau of Statistics (ABS) Gross Domestic Product (GDP) data, showed in seasonally adjusted terms, GDP increased 0.6% during Q2 2012. Although slower than the strong result of 1.4% in Q1 2012, through-the-year GDP growth was a solid 3.7%. Deloitte Access Economics expect annual GDP growth to be 3.0% in 2012-13 and to rise to 3.4% in 2013-14 before easing to 3.3% in 2014-15. UNEMPLOYMENT RATE STEADY The unemployment rate remains at the healthy level of 5.2% (trend) where it has settled over the past four months. However, monthly full-time jobs growth has disappeared. Over the 12 months to August 2012, full-time employment increased by 27,900 jobs and while this is the largest increase over a 12 month period since October 2011 it is well below trend. CONSUMER PRICES SETTLE The latest inflation data from the ABS shows that annual headline inflation rose just 1.2% during the 12 months to June 2012, down compared with a rise of 1.6% through the year to March 2012. This saw the Consumer Price Index (CPI) grow by 0.5% during the quarter and ensures that the inflation rate remains well below the Reserve Bank of Australia (RBA) target range of 2% to 3%. INTEREST RATES Enough evidence showing that the national economy is growing at around trend without excessive inflationary pressures convinced the RBA Board to keep the official cash rate at 3.25% in November. The Bank pointed out further effects of actions already taken to ease monetary policy can be expected over time. AUSTRALIAN DOLLAR After fluctuating around parity with the $US over the first half of 2012, the recent round of quantitative easing (QE3) announced by the US Federal Reserve has been accompanied by trade in the Australian Dollar at between $US1.02 and $US1.03. ADELAIDE INDUSTRIAL MARKETS Outer North Elizabeth West Direk Edinburgh Burton Port Wa Outer Harbor ay kefield hw Hig ry Road bu Salisbury South lis ad Sa Ro rth Green Fields No in Ma Gillman ) XY Port Adelaide Pooraka RE (P y wa Port River Expre ss Cavan Inner North Wingfield Grand Junction Road Woodville Regency Park ad South Road Ro Po Beverley st rt Ea Ro rth ad No Stepney Mile End Adelaide Inner West CBD East North Plympton South Road So ut h Edwardstown Ea Inner South ste rn Fr ee wa y Clovelly Park Southern Expressway Outer South Lonsdale Colliers International | p. 2
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaideKey Market IndicatorsGDP V GSP Australian GDP vs South Australian GSP• Accordingto the ABS, in seasonally 7.0% adjusted terms, through the year GDP • Forecast growth was 3.7%. 6.0%• Accordingto Deloitte Access Economics 5.0% Annual Growth (%) September 2012 Business Outlook, GDP growth of 3.0% is forecast for 2012-13. 4.0% Growth is expected trend marginally upwards in 2013-14 with Deloitte Access Economics 3.0% forecasting GDP growth to be 3.2%. 2.0%• SouthAustralian Gross State Product (GSP) growth is forecast to be 2.4% in 2011-12 and 1.0% forecast to trend downwards in 2012-13, with 0.0% Deloitte Access Economics forecasting SA 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 GSP to be 1.0%. South Australia Gross State Product Australian Gross Domestic Product Source: Deloitte Access Economics / Colliers International ResearchINDUSTRIAL CONSTRUCTION Adelaide industrial development pipeline• Thereis approximately 45,000m² of industrial 50,000 floor space currently under construction within Adelaide’s industrial precincts. These 45,000 projects have expected completion dates 40,000 ranging from the last quarter of 2012 to 35,000 throughout 2013. 30,000 Floorspace(m2)• There is currently approximately 31,841m² 25,000 of known industrial projects listed with development approval. 20,000 15,000• Development Applications have been submitted on a number of projects however 10,000 the building area component is not known. 5,000 0 Development Approval Contract Let Construction Source: Colliers International ResearchIMPORT CONTAINER TRADE FLINDERS PORTS - IMPORT container trade in teu’s• Containertrade through Flinders Ports 11,000 increased by 5.0% in the month to July 2012 10,000 with a total container volume through Number of TEUs (Twenty-foot Equivalent Units) 9,000 Port Adelaide being 22,511 TEUs. 8,000• Container imports were 9,998 TEUs in July 7,000 2012, up 0.1% from June 2012. 6,000 5,000• On a year on year basis, container imports are 4,000 up nearly 43.5% on the same time last year. 3,000 2,000 1,000 0 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Imports 5 year average 3 Month Trend Source: Flinders Ports / Colliers International Research Colliers International | p. 3
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaide Outer North RENTS • The sale of the South Australian property leased to Kimberly-Clark, 9-13 Caribou Drive, • Overallrents have remained relatively stable Direk, reflected an individual sale price of $9.2 during the last six months with any increases million and a market yield of 8.63%. a result of annual rent reviews. • InAugust 2012, Walker Corporation sold Lot • Primenet face rents average between $85 22 Mirage Road, Direk within Vicinity and $110/m² pa and Secondary net face rents Industrial Base to Bonney Welding for between $50 and $65/m² pa. $892,000, reflecting a land price of $87.50/ • Incentives average between 10% and 20%. m². Emmett Property will develop a 3,300m² warehouse/office facility on the site which LEASING ACTIVITY covers approximately 10,200m². • InJuly 2012, it was confirmed that Cameron • InJuly 2012, Buttrose Earthmovers also bought Interstate had pre-committed to lease a new a site from Walker Corporation for $336,200. facility at Edinburgh Parks. The 6,200m² The 3,362m² site is located within Vicinity purpose-built logistics and freight transfer Industrial Base at 10 Caribou Drive, Direk. facility will be developed by owner and developer Commercial & General. The facility • InSeptember 2012, developer Proactive is expected to incorporate high clearance Property acquired a 4,820m² site at Mirage9-13 Caribou Drive, Direk warehousing corporate offices and a large Road, Direk from Walker Corporation forKimberly-Clark distribution facility recently sold on external concrete hardstand area. The facility $457,900, reflecting a land price of $95/m².a market yield of 8.63%. Image is an aerial view of is expected to be completed later next year. Also located with Vicinity Industrial Base, aEdinburgh Parks. development application has recently been • Commercial & General also redeveloped the submitted to build a 1,500m² warehouse and circa 35,000m² distribution facility leased to office facility. Coca-Cola Amatil (CCA) in December 2011. Located on the corner of Frost and Cross YIELDS Keys Road in Salisbury South, the former site • Primemarket yields range between 8.00% of Bridgestone Australia has been refurbished. and 9.00% and Secondary market yields CCA recently relocated from their existing site between 9.00% and 9.75%. at Gillman. • Overallyields have firmed at least 25 basis • InApril 2012, GTS Freight Management points in the last six months. leased a near new office warehouse facility located at 4 Gidgie Court, Edinburgh Parks. • Thenewly constructed property leased to The facility, which comprises circa 2,453m², is Nick Scali at 9 Mirage Road, Direk sold in situated on a site of 15,440m². It has been January 2012 on a market yield of 8.0% and leased on a five year term at an estimated most recently the Kimberly-Clark facility at rate of $100/m². Direk sold on a market yield of 8.63%. SALES ACTIVITY • Primecapital values range between $900 and • InJune 2012, 360 Capital confirmed it had $1,300/m² and Secondary capital values $500 acquired a portfolio of four properties from to $800/m². Walker Corporation, including one in South Australia. All properties are recently completed design and construct properties and 100% leased with long lease terms to major tenants. Yields for all properties are within the 8.0% range. The sale included two properties in Queensland, The Reject Shop distribution facility and Australian Pharmaceutical Industries (API), both within the Citiswich Business Park in Ipswich, a Grace Group warehouse and storage facility at Hume in the Australian Capital Territory and a Kimberly-Clark distribution facility at Direk in South Australia. Colliers International | p. 4
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaide Inner North RENTS SALES ACTIVITY • The Inner Northern precinct continues to • InJune 2012, 16-20 Johansson Road, dominate the majority leasing transactional Wingfield sold for $9.5 million on an initial yield activity across Adelaide. of 11.6%. Receivers and Managers were appointed in 2011. It sold fully leased to CMA • Primenet rents currently range between $100 Recycling who has been in occupation for and $145/m² pa and Secondary net rents some time. The property comprises modern between $65 and $90/m² pa. office warehousing of approximately 10,866m² • Incentives average between 10% and 20%. and has a site area of circa 60,570m². • InJune 2012, it was confirmed that 360 LEASING ACTIVITY Capital had finalised settlement of the sale of • InFebruary 2012, Interlloy signed a long term 244 Eastern Parade, Gillman from Becton for lease for 1 William Circuit at Pooraka. The $5.65 million. The sale price represents an 4,385m² property had formerly been occupied market yield of 9.62%. The property is fully by Bohler Uddeholm (Bohler Steel) who sold it leased to Chep Australia Ltd until December late last year. 2014. Situated on a corner site of 45,000m² approximately, improvements include an office • Australand acquired the Electrolux 84,000m² factory of approximately 7,915m². site at 19 Pope Street Beverley in an off-15-23 Whicker Road, Gillman market transaction at the end of 2011. A new • 203-215 Hanson Road, Athol Park sold withIn July 2012, ACI Glass leased a 32,000m²warehouse at 15-23 Whicker Road, Gillman. At the facility is under construction for Electrolux, vacant possession in July 2012 for $4.68end of June 2012, Elders vacated the large circa who pre-committed to lease a new purpose- million. The sale price represents an imputed70,000m² property. The majority of the remaining built 25,500m² facility from Australand. The market yield of 11.6%. The sale follows thetenancies have since been leased. lease is for 12 years at an estimated net rent appointment of Receivers and Managers late of $87/m². The building is expected to be last year. It was previously occupied by San completed next year. The new building will be Marino Smallgoods who purchased the situated on a site area of around 40,000m², property in 2006. Improvements include with the remainder of the site is likely to factories and warehousing plus offices with be offered as design and construct an approximate building area of 6,856m². The leasing opportunities. site is circa 13,890m². It was purchased by the Master Butchers Co-operative. • Earlierthis year Australian Independent Glass pre-committed to lease a new facility at • InOctober 2012, settlement of 589 Grand Pooraka Enterprise Park. The 2,700m² Junction Road, Gepps Cross was finalised for building, which is located at 35-37 Maxwell $8 million. The property was formerly known Road, Pooraka, was completed in July 2012. as Gepps Cross Girls High School and has been sold with vacant possession to Cavpower • In June 2012, Cospak signed a five year lease for who has development approval to redevelop the Wingfield Distribution Centre at 30-32 Rosberg site. The area of the site is approximately Road, Wingfield. The property comprises two 59,530m². separate buildings of modern construction which are connected by an undercover canopy. The YIELDS property has a combined gross lettable area of • Having compressed in the first half of 2012, approximately 6,787m² and a site area of approximately 12,688m². overall yields are now holding stable. • In • Prime market yields currently range between August 2012, KW Doggett re-committed to lease a 3,500m² warehouse facility located 7.75% and 8.50% and Secondary market within Goldsborough Industrial Estate. The yields between 8.50% and 9.50%. property is situated at Unit 3, 29 Produce Lane, • Prime capital values range between $1,450 Pooraka and has been leased for three years. It and $1,900/m² and Secondary capital values is estimated the property has a site area $900 to $1,300/m². of 9,000m². • It was recently reported that Spotless Group had pre-leased a purpose-built facility at 2-32 Pedder Crescent, Dudley Park. The 4,400m² building is currently under construction and is expected to be completed in December 2012. Colliers International | p. 5
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | ADELAIDE West R which is fully leased to Metcash Trading Limited, sold to the owner of Cheap as Chips • Primenet rents currently range between in June 2012 for $35.110 million. The sale $110-$170/m² pa and Secondary net rents price reflects an initial yield of 15.46%. The between $65-$110/m² pa. property has a total building area of 58,794m² • Incentives average between 0% and 15% for and a site area of 119,171m². Cheap as Chips is Prime and 10% and 20% for Secondary space. likely to occupy the site following the expiry of the current lease to Metcash in December 2015. I I I • InFebruary 46 First Street, Brompton sold • InAugust 2012, Unit H, 5 Butler Boulevard, with vacant possession for $950,000. The Adelaide Airport was leased to Ericsson sale price represents an imputed market yield Australia Pty Limited. The building, which is of 7.90%. The property comprises an office owned by Australand, has multiple tenancies. warehouse facility with a building area of Unit H is approximately 1,222m² and has been approximately 876m² situated on a corner site leased for five years with options. with an area of 1,382m². It was purchased by private investor. • InMay 2012, the State Government (Department of Health) leased 960m² at • InJuly 2012. 17-19 Commercial Street and 81-83 Stephens Avenue, Torrensville. The 49 Barwell Avenue, Marleston sold with1 Butler Drive, Hendon modern office warehouse building has been vacant possession for $4.1 million. TheIn August 2012, 1 Butler Drive, Hendon sold initially been leased for seven years at an property was sold by the Commissioner offor $1.67 million on a market yield of 13.76%. estimated rate of $141/m² net. Highways to an owner occupier. EmmettThe property sold fully leased to Hendon Property will redevelop the site for Hair CareSemiconductors Pty Ltd. Improvements include a • In September 2012, Love Energy signed a five4,104m² office and warehouse and the site area is Australia. The site has development approval year lease for 2-4 Adam Street, Hindmarsh.approximately 8,213m². to construct a 5,800m² office and warehouse The property had previously been occupied by facility. The development is expected to Diageo who has since relocated. The near completed by the end of 2013. new office warehouse comprises approximately 1,485m² and has been leased to I Love Energy for around $155/m² net. • Market yields have remained stable since the I I start of 2012. • CPTManager Limited (Centro Properties • Currently Prime market yields range 6.75% Group) property at 404-450 Findon Road, and 7.25% and Secondary market yields Kidman Park has now sold. The property, between 7.75% and 8.50%. Outer South R • InJune 2012, 32 Heath Street, Lonsdale sold • Prime net face rents range from $70 to 90/m² pa with vacant possession for $1.2 million. and Secondary net face rents $40 to $85/m² pa. Improvements include high clearance warehousing and offices of circa 1,436m² • Incentives average between 10% and 15%. on site of 6,431m². It was purchased by a private investor. The sale price represents I I a rate of $835/m². • Therehave been a limited number of sale transactions in the precinct during 2012. I • Primemarket yields range from 9.00% to • InMarch 2012, 12 Kitawah Street, Lonsdale 9.75% and Secondary market yields from sold with vacant possession for $759,000. 9.75% to 10.50%. Includes warehousing plus offices of approximately 1,015m² on a site of 2,027m². The sale price represents a rate of $747/m². oll e s Inte nat onal | p. 6
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaide Inner South RENTS SALES ACTIVITY • Primenet face rents range between $105 and • InJune 2012, 1102-1106 South Road, $150/m² pa and Secondary net rents range Edwardstown sold with vacant possession for between $65 and $100/m² pa. $4.75 million. Formerly occupied by Southlands Mitsubishi, the site includes • Incentives average between 10% and 15%. improvements of circa 2,464m² and has a land area of 10,160m². The property is LEASING ACTIVITY currently for lease as design and construct. • InMay 2012, Global Pumps Inc pre-committed • 31Bennet Avenue, Melrose Park sold with to lease a purpose-built facility located at 6 (10-12) Selgar Avenue, Clovelly Park. The vacant possession in March 2012 for $1.175 development will comprise approximately million. The sale price represents an imputed 4,500m² of improvements, including a two market yield of 7.11%. Comprises high storey office and distribution centre and will clearance warehousing plus offices of be situated on a site area of 11,690m². approximately 460m² on a site of 1,307m². Development approval has recently been granted and construction is expected to get YIELDS underway later this year. It is expected to be • There has been limited major investment complete by December 2013. activity, as such yields remain unchanged.76 Magill Road and Stephen Street, NorwoodPurchased by the Urban Renewal Authority • Prime market yields average between 6.75%in May 2012 for $15 million under a sale and and 7.75%. Secondary market yields betweenleaseback arrangement. 7.75% and 9.00%. East RENTS • In March 2012, 18 Chapel Street, Norwood sold with vacant possession for $640,000. • Primenet rents range from $120 to $180/m² The sale price represents a rate of $1,617/m². pa and Secondary net rents remain within the The property includes warehousing of 383m² range of $65 to $110/m² pa. and is on a site of 560m². It has been • Incentivesaveraging 0% to 5% across both purchased by an owner occupier. grades in this precinct. • 48 Henry Street, Stepney sold at auction in SALES ACTIVITY April 2012 for $755,000. The property sold with vacant possession and the sale price • InMay 2012, the sale and leaseback of 76 Magill reflects a rate of $2,007/m². Includes a high Road and Stephen Street, Norwood was clearance warehouse and office. The sale was finalised for $15 million, on a market yield of settled in June 2012 to an owner occupier. 6.5%. The property has been occupied by Caroma Industries, a fully owned subsidiary of GWA Group Limited. GWA Group Limited announced in February 2012 that a conditional contract had been entered into, subject to environmental assessment and other conditions. Caroma agreed to leaseback the site until a new facility is available more suited to their requirements. The total site covers approximately 19,920m² and includes improvements of 13,442m². The Norwood site sold along with a non-core property in Coburg, Victoria under a sale and leaseback arrangement for a combined price of $19 million. Colliers International | p. 7
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaideNew Supply Pipeline DEVELOPMENT UPDATE Estimated Address Suburb Area (m2) Status Project Type Comments Completion Outer North 13 Mirage Road Direk 7,729 U/C 2012 New Development New office/warehouse facility for Cahill Transport. Development 32 Mirage Road Direk 3,300 2013 New Development New office/warehouse facility for Bonney Welding. Approval Development 12-20 Orion Road Direk 1,500 2013 New Development New warehouse / distribution facility. Approval Inner North 10 Myer Court Beverley 2,842 U/C 2012 New Development Construct warehouse with associated offices. 19 Pope Street Beverley 25,500 U/C 2013 New Development New warehouse plus offices for Electrolux. 5-7 Myer Court Beverley 1,744 U/C 2013 New Development Two office warehouse units. Construction of new warehouse facility for Spotless 2-32 Pedder Crescent Dudley Park 4,400 U/C 2013 New Development Group. Development 18 Myer Court Beverley 871 2013 New Development Construction of warehouse. Approval Demolition of six buildings on site and construc- Development 589 Grand Junction Road Gepps Cross 5,400 2013 New Development tion of new workshop and associated buildings plus Approval hardstand area for Cavill Power. Development 60 Grand Junction Road Kilburn 2,400 2013 New Development Construct new warehouse/distribution centre. Approval Development 1-3 Islington Court Dudley Park n/a 2013 New Development Construction of three warehouse units. Approval Development 60-66 Pym Street Dudley Park n/a 2013 New Development Construction of new warehouse and office facility. Application 164-168 Cavan Road Dry Creek Site 5 ha Planning 2015 Redevelopment Proposed redevelopment of site for San Remo. West Construction of new warehouse and two level 387-391 South Road Mile End South 1,500 U/C 2013 New Development office building. 47-49 London Road Mile End 2,700 U/C 2013 Redevelopment Extension of Allied Mills warehouse. 17-19 Commercial Street Development Marleston 5,800 2013 New Development Construct office and associated warehousing. and 49 Barwell Avenue Approval South Development 13-15 Deloraine Road Edwardstown 1,089 2013 New Development New warehouse and office. Approval Development Construct two storey office and distribution centre 6 (10-12) Selgar Avenue Clovelly Park 4,500 2013 New Development Approval for Global Pumps Inc. 32-42 Woodlands Development Edwardstown n/a 2013 New Development Construction of six tenancy warehouse units. Terrace ApplicationSource: Colliers International Research Colliers International | p. 8
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaideRecent Market Transaction Activity Leasing Activity Net Face Rent Address Suburb Start Date GLA (m2) Tenant ($/m2) East 9b Nelson Street Stepney Jul-12 180 $133 Pack Send Norwood 41 Magill Road Stepney Feb-12 1,131 $198 ProAV Solutions (formerly AV Central) Inner North 2-32 Pedder Crescent Dudley Park Dec-12 4,400 n/a Spotless Group 19 Pope Street Beverley Sep-12 25,500 $87 Electrolux U3, 29 Produce Lane Pooraka Aug-12 3,500 $102 KW Doggett 15-23 Whicker Road Gillman Jul-12 32,000 $45 ACI Glass 35-37 Maxwell Road Pooraka Jul-12 2,700 $120 Australian Independent Glass Pty Ltd 30-32 Rosberg Road Wingfield Jun-12 6,787 $85 Cospak Pty Ltd Unit 3, 2 Lafitte Road Wingfield May-12 600 $75 Shred-X 8-12 George Street Green Fields Apr-12 6,516 $54 NBNCo Limited 334-338 Cormack Road Wingfield Apr-12 3,487 $113 Corporate Express 7 Naweena Road Pooraka Feb-12 4,385 $104 Interlloy Pty Ltd Outer North 4 Gidgie Court Edinburgh Parks Apr-12 2,453 $101 GTS Freight Management Lot 303 Kaurna Avenue Edinburgh Parks Feb-12 5,360 $47 Ausco Modular Pty Limted Vicinity Industrial Estate, Direk Jan-12 3,000 $90 Nick Scali Mirage Road Inner South 6 (10-12) Selgar Avenue Clovelly Park May-12 4,500 n/a Global Pumps Inc 146A Daws Road Melrose Park Feb-12 1,586 $57 Australian Natural Therapy Co Inner West 2-4 Adam Street Hindmarsh Sep-12 1,486 $155 Love Energy Unit H, 5 Butler Boulevard Adelaide Airport Aug-12 1,222 n/a Ericsson Australia Pty Limited 78 Hughes Street Mile End Aug-12 500 $110 Pro Video 20 Cawthorne Street Thebarton Jul-12 500 $80 JamJar Pty Ltd 81-83 Stephens Avenue Torrensville May-12 960 $141 State Government (Department of Health)Source: Colliers International Research Colliers International | p. 9
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaideRecent Market Transaction Activity Investment Sales Activity Capital GLA Market Address Suburb Sale Date Sale Price Value Vendor Purchaser (m2) Yield* ($/m2) East State Government (Urban 76 Magill Road & Stephen Street Norwood May-12 $15,000,000 13,442 $1,116 6.50% GWA Group Limited Renewal Authority) Inner North 16-20 Johansson Road Wingfield Jun-12 $9,500,000 10,866 $874 1 11.57% 2 WMR Investments Pty Ltd B Russo Nominees Pty Ltd Becton Investment 244 Eastern Parade Gillman Jun-12 $5,650,000 7,915 $714 9.62% Management (360 Capital Jomarie Pty Ltd Industrial Portfolio) 29-31 Goodall Avenue Kilkenny Mar-12 $1,980,000 2,682 $738 8.54% FGP Co Pty Ltd ACN 150 653 875 Pty Ltd 31-41 Kapara Road Gillman Jan-12 $3,900,000 3,916 $996 9.58% Wadi Pty Ltd Undisclosed Outer North 9 Mirage Road Direk Jan-12 $3,403,196 3,000 $1,134 7.98% Sem Group of Companies Private Inner West 1 Butler Drive Hendon Aug-12 $1,670,000 4,104 $407 13.76% IES Services Pty Ltd Acacia Drive Pty Ltd 404-450 Findon Road Kidman Park Jun-12 $35,110,000 58,794 $597 1 15.46% 2 CPT Manager Limited In For A Pound Pty Ltd Unit 1, 138-140 Ashley Street Underdale May-12 $766,000 692 $1,107 1 7.96% 2 Austral Ventures Pty Ltd PrivateSource: Colliers International Research* Yields quoted are equivalent revisionary yields.1 Capital value is indicative of approximate gross building area, but has not been confirmed.2 Yield is indicative of approximate net income, however has not been confirmed. LAND/DEVELOPMENT Sales Activity Site Sale Price Address Suburb Sale Price Area Vendor Purchaser Date ($/m2) (m2) Inner North 25 Staite Street Wingfield Aug-12 $260,000 920 $282 3 Private Private Outer North Mirage Road Direk Sep-12 $457,900 4,820 $95 3 Walker Direk Development Pty Ltd Proactive Property Pty Ltd Lot 22 Mirage Road Direk Aug-12 $892,500 10,200 $87 3 Walker Direk Development Pty Ltd Bonney Property Investments Pty Ltd 10 Caribou Drive Direk Jul-12 $336,200 3,362 $100 3 Walker Direk Development Pty Ltd Carjoda Pty Ltd Inner West 17-19 Commercial Street Marleston Jul-12 $4,100,000 16,677 $246 3 Commissioner of Highways Gauvin Enterprises Pty Ltd & 49 Barwell AvenueSource: Colliers International Research3 Price is indicative of approximate site area, however has not been confirmed. Colliers International | p. 10
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaideRecent Market Transaction Activity VACANT POSSESSION SALES ACTIVITY Capital GLA Market Address Suburb Sale Date Sale Price Value Vendor Purchaser (m2) Yield* ($/m2) East 57 Beulah Road Norwood Jan-12 $1,186,000 653 $1,816 1 n/a Private Private Inner North Allenby 7 Charles Street Aug-12 $360,000 230 $1,565 1 VP Private Private Gardens G E Harrison (Holdings) 475 Grand Junction Road Wingfield Aug-12 $790,500 1,547 $381 1 VP M & J Mucha Pty Ltd Pty Ltd Tag Property Nominees J Codling Investments 3 Bollen Street Kilkenny Aug-12 $1,155,000 1,560 $740 1 VP Pty Ltd Pty Ltd 203-215 Hanson Road Athol Park Jul-12 $4,680,000 6,856 $683 1 VP A & E Marino P/L Master Butchers Co-Op Ltd 62-66 Grand Junction Road Kilburn Jul-12 $5,000,000 9,690 $515 1 VP Coventry Group Ltd Benson Land Pty Ltd Arentz & KKG Engineering 5-7 Gumbowie Avenue Edwardstown Jun-12 $990,000 1,259 $786 1 VP Kerton Brothers Pty Ltd Pty Ltd 55 Wodonga Street Beverley May-12 $815,000 730 $1,116 1 VP Austral Ventures Pty Ltd Kimen Pty Ltd 483-485 South Road Regency Park May-12 $3,000,000 2,706 $1,108 1 VP Samaras Nominees Pty Ltd Jozef Franco Pty Ltd 14 Fifth Street Wingfield Mar-12 $260,000 204 $1,274 1 VP Private Private HM Australia Holdings 471-473 South Road Regency Park Feb-12 $2,100,000 2,176 $965 1 VP Private Pty Ltd Inner South North 58 Deeds Road Jul-12 $1,457,500 1,262 $1,169 1 VP Private Marlborough Group Pty Ltd Plympton 1102-1106 South Road Edwardstown Jun-12 $4,750,000 2,464 $1,928 1 VP Yeomans Nominees Pty Ltd AB & SM Rawlings Pty Ltd Lincoln Hills Securities 31 Bennet Avenue Melrose Park Mar-12 $1,175,000 824 $1,426 1 7.11% Private Pty Ltd Outer South 32 Heath Street Lonsdale Jun-12 $1,200,000 1,436 $835 1 VP Peter Pham Pty Ltd Private Derek Gee Installations 12 Kitawah Street Lonsdale May-12 $759,000 1,015 $747 1 VP Private Pty Ltd Inner West 57 Hampton Road Keswick May-12 $869,000 530 $1,639 1 VP Rayke Nominees Pty Ltd C & J Mahoney Pty Ltd Westside Properties (SA) 11-13 West Thebarton Road Thebarton Apr-12 $2,950,000 2,200 $1,340 1 VP Anrose Nominees Pty Ltd Pty Ltd 46 First Street Brompton Feb-12 $950,000 876 $1,084 7.90% SCW Pty Ltd Whim Pty LtdSource: Colliers International Research* Yields quoted are equivalent reversionary yields.1 Capital value is indicative of approximate gross building area, but has not been confirmed. Colliers International | p. 11
    • RESEARCH & FORECAST REPORT | SECOND HALF 2012 | INDUSTRIAL | adelaideInfrastructure Update 522 offices in INFRASTRUCTURE update 62 countries on PROJECT LOCATION STATUS COMPLETION DATE COMMENTS 6 continents Road United States: 147 Elevated road bridge providing multiple Canada: 37 South Road Superway ALL U/C 2013 lanes in each direction above the existing Latin America: 19 South Road alignment. Asia Pacific: 201 Duplication of 22 km of the Southern EMEA: 118 Southern Expressway - Expressway (9 road bridges and 5 South U/C 2014 duplication pedestrian bridges). • $1.8 billion in annual revenue A series of non-stop road links connecting billion square feet under • 1.25 the north and south, providing a 78 management Adelaides north-south kilometre corridor. Comprises four road ALL Ongoing Ongoing links: Northern Expressway, Northern • Over 12,300 professionals corridor Connector, South Road upgrades, Southern Expressway. Construction of an expressway standard road in a new corridor between the COLLIERS INTERNATIONAL interchange connection of Port Wakefield Northern Connector Outer North Pending 2016-2017 Level 10 Road and the Northern Expressway and Salisbury Highway (a distance of 99 Gawler Place approximately 14 kilometres). Adelaide, SA, 5000 tel 08 8305 8888Source: DMITRE/Colliers International Research FAX 08 8231 7712Outlook researcher Katy Dean Manager/ResearchPrime yields are holding steady between 8.0% and 8.5% and this range is unlikely to change over tel 08 8305 8806the remainder of 2012. Expect modest yield compression in 2013, most likely from Q2-2013 when FAX 08 8385 0206transactional activity for the year is well underway. Market indicators are in a stage of consolidation,with the recent stabilising of rents and yields supporting this trend. However, 2013 should see someexpansion in values, especially in traditional core precincts. At the same time, the Outer North is likelystandout in 2013. There has already been some growth here and this trend should continue.There is currently a positive spread between the cost of funds and the return on investment property.The market hasn’t seen this since 2007. As the economic outlook continues to improve, more Colliers International does not give any warranty ininvestors will be keen to act and increase holdings in the Adelaide industrial market. Expect the relation to the accuracy of the information contained involume of institutional acquisitions to increase substantially in 2013 and continue into 2014. Further, this report. If you intend to rely upon the informationas the high profile design and construct projects come to fruition, there will be an increase in the contained herein, you must take note that the information, figures and projections have been providednumber of investment assets which offer significant appeal to investors wanting to diversify or by various sources and have not been verified by us. Weincrease their portfolio. Consider the recent pre-lease commitments. On the whole, the investment have no belief one way or the other in relation to the accuracy of such information, figures and projections.market will be well placed to meet the increasing demand from motivated buyers. Colliers International will not be liable for any loss or damage resulting from any statement, figure, calculationThe leasing market has remained solid throughout 2012. Expect a strong finish to the year. This or any other information that you rely upon that ismomentum will continue into 2013. Demand will remain high and with a number of major tenants contained in the material. COPYRIGHT - Colliers International 2012.currently in the market with requirements unfulfilled, expect further pre-lease activity. While the lastquarter of 2012 is not likely to see any major changes to rental ranges, there will be growth in 2013.The outlook is positive. Sale volumes will increase, modest yield compression is likely and rentalgrowth will return. Accelerating success.www.colliers.com.au/research