This article is from the Australian Property Journal archive
SINGAPORE’S Frasers Logistics & Industrial Trust has snapped up two prime industrial investment properties in Sydney and Brisbane for a total of $62.6 million, on an attractive combined yield of 6.5%.
The two properties located at 3 Burilda Close, Wetherill Park in Sydney’s west and 103-131 Wayne Goss Drive in Berrinba, 21km south-east of Brisbane’s CBD.
The Sydney property was completed in May 2017 and comprises GLA of 20,078 sqm and is leased to Nick Scali and Plastic Bottles Pty Ltd with a WALE of seven years and fixed annual rental increase of 3.1%. It was acquired for $31.5 million on a yield of 6.1%. It is a leasehold with 88.9 years remaining.
The Berrinba property is freehold acquisition for $31.1 million on a yield of 6.8%. Completed in September last year, it comprises GLA of 19,487 sqm and is leased to National Tiles and Paccar Australia Pty Ltd with a WALE of 4.2 years with fixed annual rental increase of 3.5%.
FLT’s CEO Robert Wallace said the acquisitions will strengthen the trust’s footprint in Australia’s eastern seaboard.
“Sydney and Brisbane continue to be core markets for FLT, and in the last 12 months both markets have seen strong market demand with limited supply.
“The two proposed acquisitions also demonstrate our active management approach through the recycling of capital from the divestment of non-core properties,” he added.
Upon completion, the trust’s portfolio will have 82 properties with a total GLA of approximately 1.9 million sqm and a portfolio value of approximately A$2.9 billion.
The acquisitions will be funded from the sale proceeds of 80 Hartley St in Smeaton Grange, and Lot 102 Coghlan Rd in Adelaide.
The trust sold the Smeaton Grange property in July this year for $90.5 million and the Adelaide asset changed hands for $8.76 million.
Australian Property Journal
