This article is from the Australian Property Journal archive
PROPERTYLINK has completed its sale of a Frenchs Forest industrial asset for $20.75 million, banking on growth prospects owing to infrastructure projects taking place in the region.
The 8,275 sqm site at 12a Rodborough Road in Sydney’s northern suburb has a 7,490 sqm office and warehouse facility and sold 82.5% leased, with the major tenant being Linfox Group subsidiary and ATM specialists Integrated Technology Services Limited. It traded at a passing yield of 7.69%, with 8.40% fully let.
Martin O’Brien of Shore Commercial property negotiated the off-market transaction on behalf of a private investor.
“With the Northern Beaches Hospital due for completion in the third quarter of 2018, combined with State Government infrastructure development, principally the implementation of the B Line rapid transport corridor, we see strong future prospects for office and warehousing space in the northern beaches precinct,” Propertylink’s chief investment officer, Peter McDonald said.
“This has led to an uptick in sales and leasing activity throughout the region led by Woolworths who recently leased 6,750 sqm of distribution space in Brookvale to increase proximity to their online shopping customers.
“With improving demand in the area, we think the whole precinct will provide solid rental growth in the next few years which has not been priced into this acquisition,”
Propertylink will place the asset into its Propertylink Australian Industrial Partnership II, established in 2015 for core-plus and value-add industrial assets.
The fund currently comprises of 14 industrial properties with total assets under management of $273 million. Propertylink has a co-investment of 17.5%, alongside Townsend Group and Norinchukin Bank.
South African-listed Investec Australia Property Fund kicked off the year with the acquisition of the 20 and 24 Rodborough Road properties for $75 million at 7.5%, which together comprise a campus-style office building of 12,366 sqm and industrial facility with 3,219 sqm of office space over two levels, and a 3,979 sqm high-clearance warehouse.
Abacus Property Group picked up the vacant 8,197 sqm site at 11-13 Rodborough Road for $6.8 million. It has a 2,320 sqm office, laboratory and storage building.
Australian Property Journal
