I can't find any easily available news! I was concerned about...

I can't find any easily available news!

I was concerned about the 18 June update about the weakness in Brisbane leasing and the comment "Several asset recycling initiatives continue to be explored, with the objective of reducing the portfolio’s exposure to the suburban office market in Brisbane and diversifying the portfolio sector mix by increasing the overall exposure to industrial assets. In part this will be dependent on leasing success." However, the update suggested little change in valuations.

I can see a big exposure to the Brisbane Technology Park - but how much of this is "the suburban office market in Brisbane"? Does this refer to offices in BTP? If so, they have a big concentration of properties in BTP but how much is offices?

The PDS says of the portfolio "a workspace focussed portfolio of 18 established, high quality industrial, technology park and business park assets ........... Industria’s portfolio provides tenants with modern, cost effective and practical spaces to meet their business needs. The workspace sector provides Industria with an investment proposition that is unique amongst AREITs." How unique are suburban offices?

Of BTP, the PDS says "Industria’s initial technology park Portfolio comprises 10 assets located within BTP ......The assets include office, laboratory, disaster recovery/data storage and warehouse facilities and are home to a diversified pool of tenants. BTP was established 1987 as a Queensland Government initiative and is now recognised as Queensland’s premier business park. Specifically tailored for commercial, knowledge and innovation businesses, BTP is now home to over 120 leading local, national and international companies. Approximately 100,000 sqm of commercial, laboratory and technical space exists within BTP, of which Industria’s Portfolio will comprise approximately 43,000 sqm."

So....I'm a little confused about suburban office space but can't see anything to drive the SP down like this?

Alf

The top 10 tenants in the PDS are:
Link Market Services
Australand Holdings
Queensland Motorways
Mitre 10 Australia Limited
Star Track Express
National Australia Bank
Radio Frequency Systems
Queensland Health
The Dempsey Group
Zernike Australia