This article is from the Australian Property Journal archive
THE Australian Industrial REIT has bought an industrial property at Erskine Park in Sydney's west for $5.5 million.
Located 45km from the city, the property is currently being developed and will comprise two warehouses and associated offices with a total gross building area of approximately 8,067 sqm.
Both buildings have precommitted seven-year leases to two tenants. The total cost is approximately $13.3 million, which represents an initial yield of approximately 7.8%.
Fife Capital Funds Limited’s managing director Allan Fife said the acquisition represents an opportunity to progress a key tenet of the fund’s strategy to acquire high quality “build-to-suit” industrial property located in major metropolitan areas.
The acquisition will increase the size of the fund’s portfolio from $295.1 million as at 30 June 2014 to $308.4 million following completion of construction. Gearing increases from 33.3% to 36.2% as at 30 June 2014 on a pro forma basis.
Property Review Australia
