This article is from the Australian Property Journal archive
ASSEMBLY Funds Management and Cadence Property Group have offloaded a last mile Dandenong logistics portfolio for $47 million, ahead of investment underwrite.
The portfolio, which comprises 345-353 South Gippsland Highway and two warehouse facilities at 51-65 Nathan Road and 88-90 Nathan Road in Dandenong South, sold to a combination of private investors and owner occupiers.
Gavin Bishop, Sean Thompson, Gordon Code and James Stott from Colliers negotiated the transaction on behalf of AFM and Cadence.
After conducting an off-market sales campaign for the assets in late 2023, Colliers were appointed to undertake a formal sales campaign resulting in the sale of the assets.
“We are pleased that our underlying thesis of significant supply constraints in in-fill markets driving rental growth materialised quickly in these three assets, and that we could achieve meaningful value uplift despite facing significant interest rises over the past few years,” said Michael Gutman, CEO of AFM.
“While we continue to be believers in the tailwinds underpinning the Industrial and Logistics Sector, the sale crystallises an attractive return for our investors, and further bolsters our war chest in a time where we are beginning to see highly interesting opportunities for deployment.”
AFM recently completed the first close of its second multi-sector real estate fund taking committed equity to $465 million, with circa $300 million to deploy, including leverage.
“We are considering a number of potential investments and the flexibility of having a multi-sector fund that can invest in a mixture of debt and equity ensures we can target investments with the best risk-adjusted return for our investors,” added Gutman.
Charlie Buxton, CEO of Cadence said the off-market approach speaks to the continued demand for ready-made industrial property suitable for storage and logistics.
“Momentum in the industrial property sector has certainly carried into 2024, the relatively short timeframe of this deal is clear evidence of that.”
“We’re fortunate to have a strong relationship with AFM who share our belief of remaining pro-active in securing positive returns on our shared portfolio and reacting to market opportunities.”
Back in November, AFM completed the first close of its second fund, raising more than $115 million from a group of high-net-worth individuals and family offices.
