This article is from the Australian Property Journal archive
REAL estate fund manager EG has paid $33 million for an industrial estate in Sydney’s south east leased to Home Timber and Hardware, and will add the asset to its fast-growing Australian Core Enhanced Fund.
The acquisition follows EG’s purchase of a trio of Sydney and North Sydney office assets for $450 million for the fund, which boasts a further half a billion dollars in investment firepower following backing from Dutch pension fund PGGM.
Its latest addition is the Matraville property at 81-87 Beauchamp Road, located nine kilometres from the Sydney CBD and well-connected to Port Botany, Sydney Airport and major transport infrastructure.
The asset has a gross lettable area of 6,319 sqm and is fully leased to the ASX-listed Metcash-owned hardware retailer for approximately the next three years.
“The rise in e-commerce, combined with the demand for businesses to be situated near major ports and intermodal infrastructure, positions Matraville as a highly desirable industrial location for a variety of occupiers”, said EG’s senior manager – capital transactions, Pishoy Gobran.
Secured via an off-market approach through Trent Gallagher of Colliers International, the property is the tenth asset acquired for the EG ACE Fund since its launch in July 2019. It also added a turnkey industrial facility in Brisbane’s Richlands for $21.5 million.
EG ACE is an open-ended, diversified fund that seeks to reposition assets to core, targeting office, retail and industrial real estate in Australia. It has additional undrawn investable capital of over $450 million.
EG currently has $4.3 billion under management on behalf of super funds and private wealth clients and with a $3.9 billion in development pipeline.
