This article is from the Australian Property Journal archive
DEXUS has sold two industrial facilities for over $140 million.
The Dexus Wholesale Australian Property Fund sold the 13-19 William Angliss Drive, Laverton North property in Melbourne’s west, leased to recycling company Visy for $92 million, a premium to the valuation of $57.5 million.
The buyer was PGIM and KordaMentha’s KM Property Funds.
The sale price reflects a yield of 4.93%, based on a net passing income of $4,541,826 per annum.
In an update to investors, DWAPF said the fund purchased the facility for $49 million and immediately prior to covid was valued at $57.5 million.
Although data obtained by Australian Property Journal shows the sale price is below the March 31 2023 valuation of $105 million, however it is inline with the December 2023 valuation of $92 million.
The Central West Distribution Centre comprises three warehouse facilities with a lettable area of 56,112 sqm, set on a 12.1 hectares site, with potential for future development (STCA).
The centre is 100% leased to Visy Glass Operations and Concept Logistics WALE by Income) of 5.5 years as at December 2023.
The sale price equates to $81 per sqm GLA, which is 27% below the assessed market rental, offering the new owners PGIM and KordaMentha, significant rental reversion upside.
It has been a busy quarter for the DWAPF, which also settled on the sale of a distribution facility at 704-744 Lorimer Street Port Melbourne for $61 million – an 11% premium to the 31 December 2023 valuation.
The fund has also reached terms to sell 121 Evans Road Salisbury in Brisbane’s south in an off-market deal, at a small premium to the book value of $52.7 million as at March 2024.
