This article is from the Australian Property Journal archive
SOME $160 million worth of Sydney industrial investment opportunities have flooded the market this week, with Aon Ari Property Trust listing properties in Villawood and Yennora just days after AMP Capital put three sites to the market.
CBRE’s Jason Edge, Elijah Shakir and Michael O’Neill are marketing the fully leased, multi-tenanted Aon Ari assets, available separately or in one line, via expressions of interest with expectations of around $45 million.
They comprise 66 Christina Road in Villawood, which has a weighted average lease expiry of 3.3 years currently returns $1.668 million, while the Yennora property at 30 Loftus Road has an 8,052 sqm building on more than 22,000 sqm of land and underwent a $4 million refurbishment and redevelopment in 2017.
It has a 4.8-year WALE and a net income of $1.36 million.
The sites are strategically located close to Leightonfield and Yennora train stations respectively.
Edge said the opportunity offered astute buyers further potential upside, either through rental growth or additional development.
“While Villawood and Yennora were once considered as secondary locations, the significant shortage of land and urban growth in Sydney means both areas are now viewed by occupiers as prime, strategic infill locations, supported by strong transport connectivity to the Sydney CBD,” he said. “The strong growth in rent and land values in both markets has seen stronger interest from investors over the past year, with major institutional players growing their portfolios with key acquisitions.”
AMP Capital is looking to bank more than $110 million from the sale of fully-leased assets in the southern suburb of Kingsgrove, and in Blacktown and Villawood in the west.
The fully-leased portfolio has a combined building area of more than 50,000 sqm and covers around a nine hectares, with net passing income of $5.85 million per annum and a weighted average lease of more than seven years.
The properties include 104 Vanessa Street, Kingsgrove, leased to Shiro Holdings, 64 Biloela Street in Villawood, occupied by VIP Packaging, and The Real McCoy Snackfood Co. facility at 30-32 Bessemer Street in Blacktown.
AMP Capital acquired the properties from JPMorgan in 2016 as part of a portfolio of six assets, for which it paid $250 million.
Australian Property Journal
