Property firm GPT has bolstered its logistics portfolio, exchanging contracts on five properties in Sydney worth a total of $212 million.
The properties have a cumulative lettable area of 88,200sqm, and a combined weighted average lease expiry of 8.6 years.
Additionally, the group noted it has started a 26,000sqm logistics development at Truganina in Melbourne, as well as a non-binding agreement for a 20,500sqm logistics development in Berrinba, Brisbane, further shoring up its logistics portfolio.
“These acquisitions and developments are consistent with GPT’s strategy to grow our position in the logistics sector,” GPT chief executive Bob Johnston said.
“The assets are all well located with good access to transport links and will benefit from ongoing demand and constrained supply.”
The acquisitions and developments fall in line with recent research from CBRE, which predicted that an additional 350,000sqm of distribution space will be required annually in Australia to service the growth of e-commerce.
CBRE head of retail and logistics Kate Bailey said South Sydney and inner Melbourne would be be prime locations.
The report, On the Up and Up: The Rise of Multistorey Warehousing in Australia, said developers would be better served by increasing the productivity of warehouses in desirable locations to keep up with this demand, rather than continually acquiring pre-built warehouses that are located too far away from major hubs to be overly useful.
“Tenants are increasingly prioritising location over rent,” CBRE’s Pacific director of supply chain advisory Christine Miller said.
“For an occupier to be in a key network location that provides quick and cost-effective access to population centres, this has the potential to deliver a really competitive solution for their supply chain.”