This article is from the Australian Property Journal archive
SOUTH Australian property developer and investor 1835 Capital is acquiring a cold storage facility, spanning nearly 12 hectares of land Adelaide’s west, for $41.5 million from Singapore-listed ARA Logos Logistics Trust.
The sale price of 404-450 Findon Road in Kidman Park comes in 3.8% above the 31 December book value of $40 million.
Completed in 1964, with periodic additions made with the most recent being in 2004, the warehouse and office property has a gross floor area of 58,795 sqm and is on 11.91 hectares of land.
ARA Logos acquired the site in 2015. Its CEO, Karen Lee said the divestment is in line with the trust’s “proactive asset management strategy to rebalance ALOG’s portfolio where capital is intended to be redeployed to building a more resilient portfolio”, and that it had been “selectively divested lower-performing properties with limited growth potential” over the last few years, the most recent being ALOG Changi DistriCentre 2, announced last week.
“With this sale, it will provide us with the financial flexibility to recycle capital and invest in other value-adding properties. We may also utilise the proceeds to pare down debt which will improve ALOG’s debt headroom for potential acquisitions of quality assets or strategic opportunities to unlock further value for the existing portfolio.”
Established in 2015, 1835 Capital has an active real estate portfolio in excess of $1 billion. It is currently focused on a 35,000 sqm biomedical office development above Adelaide’s 1838-constructed Trinity Church site at 88 North Terrace. It has touted the project as the first commercial building within the $3.8 billion biomedical city precinct.
Last year, it sold off adjoining CBD buildings, occupied by numerous state government departments, for $51 million to Charter Hall.
The Kidman Park deal is expected to complete during this half.
