19 February 2025

KM Property Funds and PGIM Real Estate have acquired a prime industrial and logistics estate in Yatala, Queensland. The estate was acquired off-market by a joint venture between a PGIM Real Estate strategy and a KM Property Funds managed private fund. 

Situated at 14 Dixon Street, Yatala, QLD, the estate is centrally located between Brisbane and the Gold Coast and benefits from direct access to the M1 Pacific Motorway. This transaction is KM Property Fund’s second industrial acquisition with PGIM Real Estate within a nine-month period, highlighting their appetite for high-quality industrial investment opportunities in Australia.

Nick Crockett, Partner at KM Property Funds commented, “We continue to build our national industrial operating partner capability and are delighted to once again partner with PGIM Real Estate on this exciting transaction. The compelling risk return profile of the estate makes it an excellent asset to be added to our portfolio.” 

Steve Bulloch, Managing Director and Head of Australia at PGIM Real Estate said, “We like the prospects for this sub-market and the high quality, multi-tenanted asset. The partnership with KM Property Funds on this acquisition aligns with our thesis of targeting high quality assets with rental reversion potential that will be attractive to core capital investors in the future.”

The estate comprises four freestanding warehouses with a gross lettable area of 43,572 sqm and a large site area of 9.6 hectares, constructed 2019-2023. The asset includes high clearance warehousing of up to 13.7 metres, full ESFR sprinklers and extensive hardstand areas, which all add to the appeal for current and future occupiers. Whilst currently fully leased with a weighted average lease expiry of 4.7 years, the passing income is well below market, presenting significant reversionary upside and a compelling acquisition opportunity.

Ryan Korda, Partner – Industrial Investments at KM Property Funds, reaffirmed the positive outlook of the industrial property market in Australia, adding, “The transaction underscores the attractiveness of quality industrial assets, driven by robust population growth, increasingly limited availability of zoned land, strong demand from occupiers and strategic infrastructure investments by the state government. We are particularly excited about the Yatala micro-location due to its proximity to both Brisbane and the Gold Coast, which will continue to capitalise on the diverse occupier pool and low vacancy rate. The accommodation itself is best in class with ideal tenancy sizes and excellent truck loading, which is a credit to Stockland and their development team.”       

The estate was sold off-market via Nick Evans and Gavin Bishop of Colliers and Jack Kelliher and Ben Hegerty of JLL.