Blackstone’s Milestone Logistics portfolio sold for $3.8 billion, the largest ever such deal in the Australian market.

JLL's revenues rise as rebound lifts deal flow

Nick Lenaghan|Aug 06, 2021

Global real estate firm JLL’s Australian arm clocked up its second biggest financial month ever in June, just as Sydney headed into a lockdown, with all parts of its business buoyed by the broader rebound that had been under way.

JLL’s Australian revenues for the first six months of calendar 2021 are tracking 30 per cent higher than the comparable 2020 levels, boosted by a record second-quarter result.

But chief executive Stephen Conry said the commercial agency was also eyeing its biggest year ever, well above its record 2019.

“So far, there is encouraging business activity even with recent and current lockdown restrictions around the country,” Mr. Conry said

“The elevated business results this year are spread throughout our diverse business, from our transactional areas of capital markets, industrial, office leasing, tenant representation to our annuity contracts business of facilities management to our consulting and valuations business.

“The recovery has touched all areas of our business and this is encouraging for momentum in the second half of the year, dependent on what impacts may arise from the Sydney and Melbourne lockdown periods.”

JLL’s fortunes lifted as the commercial property market rebounded. By the 2021 halfway mark, transaction volumes nationally reached $19 billion across the office, industrial and retail sectors, surpassing the $7.45 billion half-year investment activity in 2020. The midway tally close to matches the full year 2020 total of $20 billion.

With a boom in online shopping driving demand for warehouse space, investment has followed accordingly. The industrial and logistics sector accounts for the largest slice of the transactions tally: a record second quarter and sales of $8.73 billion across the entire market for the first half.

JLL was in the thick of the industrial action, including helping to broker the biggest ever direct property transaction in Australia, the $3.8 billion sale of Blackstone’s Milestone logistics portfolio to ESR and GIC.

Mr Conry said: “All commercial sectors of the market are recording strong results, with office investment sales tracking at $6.20 billion at the half-year mark and retail investment sales reaching $3.78 billion. JLL’s share of retail investment deals in the first half totalled $1.13 billion, from the sale of more than 16 retail assets across Australia.

“Similarly, for our office leasing and tenant representation businesses, the market demand for office space has been increasing in momentum in the first half, which is a strong barometer of business confidence and activity.”