A series of landmark deals in Sydney’s booming office property market have bolstered revenue for the Australian arm of commercial agency Jones Lang LaSalle (JLL) in the 2018 first half.
As the New York-listed, Chicago-headquartered, JLL reported its global interim result, its Australian effort showed results tracking in line with the eighth record year of revenue growth it achieved in 2017.
In Australia, revenue from JLL’s office investments business rose 91 per cent over the first six months of 2017 and industrial revenues were up 22 per cent.
In one of the biggest deals this year, JLL helped broker a stake in AMP Capital’s Quay Quarter Tower, with super fund Rest taking up a one third stake for around $900 million.
Another headline deal involving JLL was the sell-down of an $850 million stake in Sydney’s Westpac Place
In its industrial arm, JLL this week steered through the $119 million sale of a Kmart distribution centre in Melbourne’s west to industrial investment house LOGOS.
JLL’s retail investment arm has also been busy, pulling together transactions worth more than $1.5 billion for the year to-date.
“The transaction pipeline for the second half of the year includes very large scale assets across all sectors including $4 billion for the office sector alone,” said JLL Australia’s chief executive Stephen Conry.
“Combined with a strong annuity income business we expect 2018 to be our largest result ever.”
Transactions for the entire Australian commercial property market at the half-year mark are tracking ahead of last year, up from $11.7 billion in the 2017 first half to $12.5 billion the 2018 first half, on JLL figures.
Another strong driver for JLL’s local business was demand for advice on energy and sustainability services, with business in that arm increasing 42 per cent year-on-year.
Pre-tax earnings in JLL’s Asia Pacific arm, including Australia, rose 7 per cent in the second quarter to $US30 million, according to its global results.
Asia Pacific revenue and fee revenue increased 8 percent and 10 percent, respectively in the second quarter.
A big contributor to that segment result was JLL’s project and development services business, mainly in Australia, it said.