This article is from the Australian Property Journal archive
THE AMP Capital Diversified Property Fund (ADPF) has paid $250 million for a portfolio of Sydney industrial assets.
ADPF fund manager Kylie O’Connor said the acquisition was consistent with the fund strategy to increase weighting to the industrial sector and exposure to Sydney.
She added that the assets are located within land constrained markets, supporting future rental and capital growth prospects.
The portfolio was from by Aviva Investors and comprises six warehouse/logistics assets, located in a mix of core and infill locations with future urbanisation potential and proximity to existing and proposed infrastructure.
“Our research shows that the Sydney industrial market will continue to perform due to the strengthening state economy, with both the market and assets poised to benefit from ongoing significant infrastructure investment,” O’Connor said.
“I am very pleased that we have been able to secure this high quality industrial portfolio off market on attractive term for our investors,”
She add that the portfolio further enhances ADPF’s industrial tenant mix, the portfolio provides investors with a strong income stream and extends the overall weighted unexpired lease term of the fund, supporting continued attractive distributions.
The acquisition includes:
– 52 Huntingwood Drive, Huntingwood – a 17,062 sqm facility on a 35,840 sqm site, leased to DHL.
– 32 Sargents Rd, Minchinbury – a 20,059 sqm facility on a 39,740 sqm site leased to Star Track Express.
– 64 Biloela St, Villawood – a 23,304 sqm facility on a 37,730 sqm site leased to VIP Plastic Packaging.
– 52 Lisbon St, Fairfield – a 60,233 sqm facility on a 83,700 sqm site leased to Fantastic Furniture and DB Schenker.
– 104 Vanessa St, Kingsgrove – a 7,056 sqm facility on a 11,590 sqm site leased to Shriro Australia.
– 32 Bessemer St, Blacktown – a 19,792 sqm facility on a 44,800 sqm site leased to Snack Brands.
“Over the next five years, the fund remains focused on executing upon its strategy to become the pre-eminent wholesale diversified fund in the Australian market and this portfolio will enhance our ability to continue to provide attractive long term risk adjusted returns to our investors,” O’Connor said.
The fund’s increased investment in industrial property comes as AMP Capital continues to build its industrial capabilities with the recent appointment of Andrew Quade as head of industrial, asset management.
Australian Property Journal
