This article is from the Australian Property Journal archive
PROPERTY heavyweight Dexus is moving ahead with its planned $123 million acquisition of 30 hectares of industrial-zoned land near the future Western Sydney airport.
Dexus entered into a put and call option for the 113-153 Aldington Road property in Kemps Creek last month.
The site has three lots that will provide about 150,000 sqm of developed space, with a pre-commitment secured from McPhee Distribution Services for a 72,000 sqm logistics facility where it will consolidate its state operations.
The land is within the Mamre Road Precinct, which has received a $2.6 billion commitment in funding from the New South Wales government for area and infrastructure development.
Major urban development projects have been earmarked for the area around the future Badgerys Creek airport, including an employment, logistics and mixed-use precinct spanning 344 hectares that sold for half a billion dollars earlier this year.
Dexus’ agreement was entered into as it bought the McPhee Super Core Logistics portfolio for $186 million, also subject to a put and call option.
The four assets have a total of more than 70,000 sqm of industrial space with a 6.7 year weighted average lease expiry, and were exchanged on a yield of just over 4%.
Included in the portfolio are an Australia Post warehouse in Truganina and three facilities in Berrinba, with Rinnai and TLS among the tenants.
Benjamin Martin Henry of Real Capital Analytics revealed in Australian Property Journal’s Talking Property podcast that industrial demand has outstripped retail and offices combined for the first time.
