The pending sale of the Singapore government's industrial property portfolio, valued at about $1 billion, will help boost the deal pipeline in the second half of the year to more than the $5.4 billion of sales recorded in 2014.
PropertyLink is though to be the front runner, although the group has consistently declined to comment.
LOGOS Property has linked up with major Canadian real estate fund manager Ivanhoe Cambridge, a subsidiary of the Canadian institutional fund manager Caisse de dépôt et placement du Québec.
The 26 assets cover more than 630,000 square metres of modern logistics space and are mainly located in the core markets of Sydney, Melbourne and Brisbane. It has a weighted average lease to expiry of 5.7 years and generates a fully leased net income of $66 million annually.
This comes as CBRE reports that in the first half of 2015, $878 million in industrial property changed hands, the slowest start to a year since 2010.
CBRE regional director, industrial & logistical services, Matt Haddon said the sale pace would increase over the next six months, with volumes likely to overtake 2014 levels.
"With a number of major deals either being marketed or in due diligence at present, sale volumes are on track to top the $5.4 billion achieved last year," Mr Haddon said.
"Given the strength of investor appetite at present, new prime logistics opportunities coming to market are being snapped up by buyers eager to gain a footprint in what is increasingly regarded as a highly attractive sector."
According to Knight Frank's head of industrial for NSW, Tim Armstrong, the impact of Sydney's hailstorm in late April was a plus for the sector, as it resulted in a material drop in stock available for lease, with vacant stock levels declining by 222,485 sq m to 573,672 sq m.
"With the damage predominantly concentrated in the Huntingwood area, the bulk of the vacancy decline was in Sydney's outer west," Mr Armstrong said.
According to the research, total take-up was a series record, measuring 265,994 sq m.
"However, 106,000 sq m was a direct result of tenants impacted by hail damage, and the bulk of activity involved relatively short-term lease terms of 12 to 15 months. Therefore, some of the sharp fall in the vacancy figure will unwind over the course of the next year as damaged facilities are repaired."
Mr Armstrong said excluding hail damage related leases, take-up measured 159,994 square metres, which was above average and confirmed that the improving conditions in the leasing market have continued.
The improved outlook will augur well for industrial giant Goodman, which reports its full-year results next month. It is also developing the facility for DHL on the Oakdale Industrial Estate in western Sydney.
According to CLSA analysts, Goodman's development work in progress will likely increase to $3.4 billion within 12 months from growth in the Americas and China/HK.
