This article is from the Australian Property Journal archive
THE Dexus Wholesale Property Fund has paid $27.4 million for an industrial estate at Hendra, 9 kms north-east of Brisbane.
DWPF has bought 441 Nudgee Rd Hendra, which is a 3.43 ha estate, also known as Northport Business Park, comprising tenancies ranging in size from 108 sqms to 3,862 sqm.
The five stand-alone properties are leased to 18 tenants, and two mid-size buildings with a higher warehouse component accommodate long-standing anchor tenants Mountain Designs and Nick Scali.
DWPF fund manager Graham Pearson said the property is an excellent fit with the fund’s industrial strategy to build a diversified portfolio of industrial assets.
The fund currently has a 12.3% exposure to the sector and its recent acquisitions include 4 Inglis Rd Ingleburn, Sydney; 34 Manton St Morningside, Brisbane; Sir Joseph Banks Corporate Park, Sydney and an industrial development site at 295 Archerfield Rd Richlands, Brisbane.
“We are pleased that we have been able to acquire the property on favourable pricing terms in an off-market transaction. Acquired on an 8.5% capitalisation rate, the asset has an attractive initial yield, high occupancy of 91.3% and presents the opportunity for enhanced returns by extending the WALE and occupancy through proactive leasing,” he added.
“This acquisition further diversifies the industrial portfolio and provides additional exposure to one of the Fund’s preferred industrial locations, complementing 34 Manton St Morningside also on the Trade Coast.
“This is a region that will benefit over the long-term from significant infrastructure investment including the Brisbane Airport upgrade and future port expansion at Fisherman Islands. We expect tenant demand for industrial property to remain strong from transport and logistics companies that are attracted to the Trade Coast’s accessibility.” Pearson concluded.
Property Review
