Industrial property yields to stay over eight per cent
Good buying opportunities exist in industrial property, with high quality assets to be found on an 8.25 per cent yield, according to Charter Hall Direct Property’s chief executive, Richard Stacker.
Buyers can afford to be more selective due to reduced buying competition, and assets in growth areas with quality long-term tenants are in high demand, according to Charter Hall Direct Property and the Colliers industrial team.
“Many would-be buyers are finding it hard to access capital, creating excellent buying opportunities for capital-ready investors who are benefiting from reduced buyer competition.” Stacker said.
Yield trends are showing the market has bottomed, Charter Hall said. In the year to June 2010, 24 industrial properties sold on an average yield of 8.7 per cent, while between January and June, yields dropped to 8.3 per cent as property values began to climb.
Charter Hall is looking to initially raise $30 million before 30 September, 2010 and up to $110 million by 30 June, 2012 for the Charter Hall Direct Industrial Fund (DIF); a closed-end fund investment targeting an 8.7 per cent per annum yield, which has received a ‘highly recommended’ rating from Lonsec.
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