This article is from the Australian Property Journal archive
PERTH-based property syndicator Properties & Pathways has completed its divestment of an industrial and logistics portfolio spanning Melbourne, Brisbane and Perth for $78.8 million.
The portfolio comprised 120,000 sqm of industrial land across six infill locations with a combined gross lettable area of 40,000 sqm and average weighted average lease expiry of four years.
RF Corval, on behalf of two separate funds, purchased the final four properties for $45.7 million. Those include three landholdings in Brisbane – two in Crestmead and another in Acacia Ridge – accompanied by one in Welshpool in Perth, and have a total site area of 69,000 sqm and gross lettable area of 28,000 sqm.
The sale price reflects an initial yield of 5.98%, with the passing rents considered below-market.
The other properties in the portfolio, one in Laverton in western Melbourne and Larapinta in Brisbane’s outer south, were purchased by two separate parties in 2021.
CBRE’s Jack Pershouse, who managed the sale campaigns on behalf of Properties & Pathways, said the portfolio featured a quality spread of income-producing assets across core logistics locations.
“These low-site-coverage landholdings generated strong interest, given their locations and accessibility, combined with pending lease expires and low vacancy rates that are allowing buyers to factor in plausible future rental growth.”
Properties & Pathways managing director Cal Doggett said entering the market at the right time delivered a fantastic result for its investor base.
“The fundamentals that attracted us to acquire these assets over the past four years are exactly the same characteristics that will allow the successful buyers to enjoy continued growth for years to come, despite capitalisation rates,” he said.
During winter, Properties & Pathways also divested two regional large-format retail assets – the Bathurst Supa Centre and Woolcock Supa Stores in Townsville – for a combined $36.55 million.
Meanwhile, RF Corval has been building a diversified portfolio of urban industrial assets across Australia’s capital cities, aiming to benefit from low site coverage, scarce supply, and strong tenant demand.
“Underpinned by high land values, we consider them as key defensive opportunities,” CEO Rob Rayner said.
RF CorVal, backed by billionaire and former Multiplex head Andrew Roberts, in August snapped up a 22,000 sqm property in Brisbane’s TradeCoast for $14.3 million, following its $15.8 million purchase of two facilities in the city’s south west.
After a run of megadeals in 2021, industrial sales across Australia over the first nine months of this year were down 29% annually to $15 billion, according to MSCI.
