This article is from the Australian Property Journal archive
REAL estate funds manager EG has quickly spent $72 million picking up Sydney assets in the industrial and healthcare sectors, which have outperformed throughout the COVID period.
In Ingleburn, EG has picked up an asset with three industrial buildings with a combined 18,514 sqm that it will value add through reconfiguration and expansion works, through targeted leasing strategies to improve contracted lease tenure.
Bought for $38.2 million, this will be the third asset for the recently raised, multi sector Australian Core Enhanced Fund.
“5 Williamson Rd will deliver reliable income from strong logistics-oriented tenants in an asset featuring multiple value-add opportunities. We are also strong believers for industrial outperformance in this improving precinct,” Daniel Farley, EG fund manager said.
5 Williamson Rd
The property is an addition to EG’s ACE portfolio, a core enhanced fund launched in June last year with the ability to invest over $800 million.
EG has also bought a fully leased office building at 60 Pacific Highway, opposite the Royal North Shore Hospital in St Leonards, for $33.8 million, on a net passing yield of 5.5%.
The vendor, AMP Capital, secured a handsome $12.5 million profit on the 2,921 sqm three level building over just 20 months of ownership, buying the asset at just 35% leased.
Now, 40% of the building’s income is generated from medical users. EG targeted the property due to its proximity to new and existing infrastructure.
“St. Leonards has experienced significant growth in the past cycle due to significant investment in health and transport infrastructure and we anticipate this to continue with the opening of the new Metro in 2024, together with further upgrades mooted for the North Shore Medical precinct,” Will Clark, manager – capital transactions said.
“The asset is well positioned to benefit from this change in the long term, whilst delivering strong commercial returns in the interim.”
It will be held in the Yield Plus Infrastructure No.2. Fund, launched in August 2016 with a $750 million real estate mandate. The fund seeks yield producing assets with repositioning potential for new or upgraded infrastructure.
Gordon McFadyen of JLL brokered the deal.
Last summer, EG offloaded the Circle on Cavill retail centre in Surfers Paradise for about $65 million to Macau gaming mogul Loi Keong Kuong.
