This article is from the Australian Property Journal archive
INDUSTRIA REIT has acquired the Edlyn Foods facility in Melbourne’s northern suburb of Epping for $15.7 million, at an appetizing 7.45% yield.
The 13 Ricky Way and 10 Jersey Drive property comprises two separately-titled, adjoining modern office and warehouse buildings constructed in 2008 and 2015. Both facilities have streets frontages and are located to the wholesale fruit, vegetable and flower Melbourne Market.
It sold with a weighted average lease expiry of 6.3 years, and settlement of the deal is expected in July.
“The acquisition meets our strategic objective of owning real estate that is well located, functional and affordable for our clients. It also provides a high yield of 7.45% growing at 3.25% per annum – and is underpinned by one of Australia’s leading food manufacturers, Edlyn Foods,” fund manager Alex Abell said.
On the other side of town, a private investor paid $14.75 million for the 15,962 sqm Hinkler Books office and warehouse building in the south-eastern suburb of Moorabbin. It has a new five-year lease to the international publisher and is on a 28,890 sqm site, zoned Commercial 2, within the Parkview Estate.
In the industrial hub of Dandenong South, Biscay Greeting Cards sold its 108 Logis Boulevard warehouse to an owner occupier for $12 million.
The 1.29-hectare property in the Logis Eco Industrial Estate has a 7,828 sqm building with dual-level office space.
Meanwhile, Industria has restructured its syndicated financing arrangement to a club structure, which it said provides more flexible terms and conditions.
In conjunction, an additional $25 million five-year facility has been secured to support future growth initiatives as well as the Epping purchase. Debt facilities scheduled to expire at the end of 2018 have been extended until June 2023.
The trust’s finance facilities now total $240 million, with the nearest refinancing event being $46.25 million in September 2019.
Australian Property Journal
