Semi-industrial in Belgium

Transcription

1 Semi-industrial in Belgium The market continues to perform in 2015 Quarterly Market Update - Pulse Summer 2015 Take-up volume in the first half year of 2015 was 466,000 sq.m., 8% above the 5-year average for the first half year. The proportion of owner-occupier transactions was 52%, the same proportion as in the past 5 years. The total volume invested in the first half of 2015 is 15.3 million, 64% below the 5-year average. The scarcity of product and high investors appetite caused prime yields for semi-industrial properties to compress 25 base points to 7.50%. Prime rents rose 9%, from 55/sq.m./year to 60/ sq.m./year.

2 2 / pulse BELGIAN SEMI-INDUSTRIAL MARKET SUMMER 2015 Market overview Semi-industrial properties in Belgium are mainly concentrated in the golden triangle Brussels-Antwerp-Ghent, with other large concentrations along the E313 motorway Herentals-Geel, the Genk- Hasselt area in the province of Limburg, and clusters in Wallonia around the cities of Liège, Mons, Charleroi and Brabant Wallon. Occupier market Q1 15 Q2 15 Change Q-o-Q Y-o-Y* Take-up Belgium LTM cumul. ('000 sqm) % -3% Take-up current qtr ( 000 sqm) % 17% Brussels/ Prov. Brabant W&F % 30% Province Antwerp % 4% Province Limburg % 34% Province East Flanders % -6% Province West Flanders % 167% Province Liège % -63% Province Namur % 49% Province Hainaut % - Province Luxembourg Prime Rent ( /sqm pa) % 9% Investment market Change Q1 15 Q2 15 > 2.5m Q-o-Q Y-o-Y Investment Vol. LTM cumul. (MEUR) % -47% Investment Vol. current qtr (MEUR) Prime Yield bps -25 bps 12 Month outlook 12 Month outlook *current quarter compared with same quarter previous year LTM : last 12 months WALTER GOOSSENS, HEAD OF INDUSTRIAL AGENCY The very high number of transactions below 1,000 sq.m. illustrates the market dynamismˮ

3 3 / pulse BELGIAN SEMI-INDUSTRIAL MARKET SUMMER 2015 FIGURE 1: TAKE-UP TAKE-UP 3% ABOVE 5-YEAR QUARTERLY AVERAGE The take-up volume in Q was 240,000 sq.m., 3% above the quarterly average in the past 5 years, 234,000 sq.m. The total take-up for the first two quarters amounts to 466,400 sq.m., which is 22% above the volume recorded in the same period last year and 8% in excess of the 5-year average volume at mid-year. The market continues to perform at a high level since The geographical spread of take-up in H shows the same pattern as in the past 5 years, the Flanders Region accounting for 73% of the transacted volume (339,500 sq.m.). 22% was recorded in the Walloon Region (103,600 sq.m.) and 5% was in Brussels (23,200 sq.m.). AVERAGE SIZE OF TRANSACTIONS DECLINED IN 2015 The average size of transactions in the first half of 2015 was 1,514 sq.m., 6% lower than the average transaction last year, which was 1,600 sq.m. There was no transaction in the market segment above 20,000 sq.m. so far this year. The largest transactions in Q were owner-occupier transactions. er-occupier transactions account for 52% of the transacted volume. Examples are the sale of 19,400 sq.m. in Aarschot to transport company Pieter Smit and the sale of the former Arseus site in Waregem to Deslee Clama (14,000 sq.m.). Powerline NV let 10,135 sq.m. in Zwijnaarde, South of Ghent, the largest letting transaction this quarter, realised by JLL, and the second largest of the year after the letting by CDS catering of 12,000 sq.m. in Brussels in Q1. HIGH NUMBER OF TRANSACTIONS 308 transactions were registered in the first half year, of which 172 in Q2 and 136 in Q1. The total number is 11% above the 5-y quarterly average for the same period, transactions were signed in the Flanders Region, representing 78% of the total, but nonetheless a smaller proportion than the average of the 5 past years, which stands at 82%. A smaller proportion than in the past 5 years was taken up in the Brussels Region, with 9 transactions representing 3% of the take-up, against an average of 5%. Higher proportion than average in the Walloon Region, where 57 transactions were registered, 19% of take-up against an average of 14%. The highest number of transactions were noted in the market segment between 500 and 2,500 sq.m., followed by the market segment up to 500 sq.m. er-occupier transactions (#125 in H1) took a 41% proportion of transactions, in comparison with a 5-y quarterly average of 39%. sq.m. TAKE-UP OF Q1 IN LINE WITH 5-Y AVE Q Brussels & Brabant F&W Antwerp Limburg Liège Namur East Flanders West Flanders Hainaut Luxembourg 10-y Ave FIGURE 2: OWNER-OCCUPATIONS VS. LETTINGS OWNER-OCCUPIER DEALS BELOW 50% AGAIN 100% 75% 50% 25% 0% Q4 Q3 Q2 Q Q er-occupation Letting FIGURE 3: TAKE-UP BY # DEALS # % 52% Q Source all Charts: JLL Research

4 4 / pulse BELGIAN SEMI-INDUSTRIAL MARKET SUMMER 2015 PRIME RENT RISE TO 60 / SQ.M. P.A. Semi-industrial prime rents rose 9% from 55 per sq.m. p.a. to 60 per sq.m. p.a. This new prime rent applies to the industrial zonings in the Brussels periphery and to the adjacent province of Flemish Brabant. Prime rents in Walloon Brabant range between 48 and 55 per sq.m. p.a. In the province of Antwerp, prime rents are between 43 and 48 per sq.m. p.a. Prime rents in East and West Flanders remained stable at 38 to 43 per sq.m. pa. In the Walloon provinces of Liège and Namur, prime rents remained stable at between 36 and 42 per sq.m. p.a. In the province of Hainaut, prime rents range between 36 and 43 per sq.m. p.a. In Limburg prime rents are from 36 to 43 per sq.m. p.a. /sqm pa FIGURE 4: PRIME RENTS Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q2 15 Brussels & Brabant F&W Antwerp West Flanders East Flanders Liège Limburg Namur Hainaut Prov. Luxembourg SCARCITY OF LAND PUSHES PRICES UP Industrial land is very scarce particularly in the Brussels Region and in Flanders: land prices range between 150 and 300 per sq.m. In the province of Flemish Brabant, prices for the best industrial land range between 165 and 260 per sq.m. whilst in Walloon Brabant the prime industrial land price is lower, between 75 and 125 per sq.m. Prices of prime semi-industrial land in the province of Antwerp vary between 150 and 220 per sq.m. Prime land prices in West and East Flanders range between 100 and 160 per sq.m. In Flanders the lowest land prices are paid in Limburg, with prime prices from 45 to 90 per sq.m. The latter price levels also apply to the Walloon provinces of Liège, Namur and Hainaut, where prime land prices are between 40 and 90 per sq.m. YIELD COMPRESSION TO 7.50% WILLEBROEK, BOOMSESTEENWEG 195 Industrial site of 2.5 ha sold to RCT Stevedoring by JLL FIGURE 5: PRIME YIELDS No pure investment deals were registered in Q2 2015, and therefore, the volume invested in semi-industrial properties in Belgium in the first half year of 2015 amounted to 15.3 mln in 3 transactions of Q1, all investments for own occupation. Buyers and sellers were all corporates. The invested volume would have been higher if prime product had been available. The largest transaction of the year so far was the acquisition by Umicore of the Trilco site in Hemiksem near Antwerp for 8.5 mln. Under pressure of the huge demand and the lack of offer, the prime yield for semi-industrial properties compressed to 7.50%. Given the wall of money aimed at industrial investment, the trend remains downward. % 8,0 7,5 7,0 6,5 6,0 7, Q Prime Yield (6/9yr) 5- yr Ave Source all Charts: JLL Research

5 5 / pulse BELGIAN SEMI-INDUSTRIAL MARKET SUMMER 2015 Transactions LARGEST OCCUPIER MARKET TRANSACTIONS LAST 12 MONTHS Year Qtr City Region Street Sq.m. Type Occupier Aarschot Flemish Brabant Oude Mechelsebaan 19,400 er Occup Pieter Smit Oostende West Flanders Plassendale I 15,000 er Occup AIM Europe Waregem West Flanders Arseus site 14,000 er Occup Deslee Clama Zwijnaarde East Flanders Nederzwijnaarde 2 10,100 Letting Powerline Beerse Antwerp Toekomstlaan 15,500 er Occup VRK Management Forest Brussels Blvd de l Humanité 11,850 Letting CDS Lot Brussels periphery Breedveld 1 11,600 Letting Lembo C Flémalle Liège Zoning Economique 33,000 er Occup Mithra Pharmaceuticals Awans Liège Rue J.L. Defrêne ,500 er Occup Lock'o Mechelen Mechelen Antwerpsesteenweg ,800 er Occup ODTH Fleurus Mons-Charleroi Rue Zénobe Gramme 15,000 er Occup Xtratherm Liège Liège Ile Monsin ,000 er Occup TRH Transactions in bold were advised by JLL

6 6 / pulse BELGIAN SEMI-INDUSTRIAL MARKET SUMMER 2015 LARGEST SEMI-INDUSTRIAL INVESTMENT TRANSACTIONS LAST 24 MONTHS Year Qtr City Address Sq.m. Price MEUR Hemiksem Herbekestraat 7, Yield Typeinvest Seller Buyer Occupation Hasselt Sasstraat 21, Investment Liège Rue Defrêne , Aartselaar Various Various Aartselaar Business Estate Transeuropean Fund Boels portfolio (9 properties) Zwijndrecht Baarbeek 2 5, occupation Trilco Coca-Cola Enterprises MCB Umicore MC Capital Lock o 36, Investment Standard Life CBRE GI 28, Investment Patrizia WDP 13, Conf. Investment Globalindus Private Occupation Unknown Chemicar Europe Seneffe Belmedis site 4, Investment MG Real Estate L Intégrale Kortenberg J.-B. Vinkstraat 2 11, Investment Intervest O&W Patronale Life Sint-Niklaas Europark Noord 19, Occupation Trading Places Current occupier Transactions in bold were advised by JLL JEAN-PHILIP VRONINKS, HEAD OF CAPITAL MARKETS Interest from investors for prime product remains high, but well let new semiindustrial property is scarce and limits transaction volumes.ˮ

7 E403 E25 7 / pulse BELGIAN SEMI-INDUSTRIAL MARKET SUMMER 2015 Golden triangle Oostende Zeebrugge Brugge E40 Kortrijk E17 N49 Gent Antwerpen St-Niklaas Lier Boom E17 A12 Mechelen Aalst Zaventem Brussels E19 E19 E34 E313 Turnhout E314 E40 Geel E314 Lummen Hasselt Genk Tongeren E429 Wavre Nivelles La Louvière Mons Charleroi E42 E411 Namur E42 Liège Airport E411 Main Seaports Main Inland Port Motorways Neufchateau Main Railways Main Rivers and Canals Arlon Characteristics : USE : storage, light manufacturing and repair activities. BUILDING TYPE : Limited number of loading docks, limited number of sectional doors, office area <50% of total built area. GEOGRAPHIC SPREAD : Golden triangle: Brussels (incl. Leuven), Brabant Wallon, Antwerp (incl. Mechelen), Ghent (incl. East Flanders between E40 and E17). Other large concentration along the E-313 around Herentals-Geel-Laakdal, Genk-Hasselt, Liège. JLL Contacts JEAN-PHILIP VRONINKS (*) HEAD OF CAPITAL MARKETS - BELUX +32 (0) Jean-Philip.Vroninks@eu.jll.com WALTER GOOSSENS HEAD OF INDUSTRIAL LEASING - BELGIUM +32 (0) Walter.Goossens@eu.jll.com PIERRE-PAUL VERELST HEAD OF RESEARCH - BELUX +32 (0) Pierre-Paul.Verelst@eu.jll.com (*) sprl / bvba COPYRIGHT JONES LANG LASALLE IP, INC All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of JLL. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.