This article is from the Australian Property Journal archive
EG has capitalised on market momentum to sell an industrial site in southern Sydney, more than doubling investor equity in less than three years on the property it bought for $36 million in 2019.
230 Captain Cook Drive was the first asset in EG’s Australian Core Enhanced (ACE) Fund, an open-ended, diversified, long-hold fund that has now grown the core-plus portfolio to $1.2 billion.
“A thorough understanding of site location was crucial in identifying this acquisition. Our demographic analysis combined with the increasing demand for in-fill logistics qualified the Sutherland Shire as an area with strong tenant demand and increasing market rental growth,” stated Chris Pak, joint managing director and chief investment officer.
He said the strategy at purchase was to lease and hold the asset after the tenant and previous owner, Dicker Data, moved into their new 30,000 sqm purpose-built facility at a neighbouring 17-hectare site.
“However, an unsolicited approach from an owner-occupier during the leasing campaign created this opportunity for our investors to divest, realising strong returns for our investors,” said EG’s head of capital transactions, Sean Fleming.
Located a 30-minute drive from Sydney Airport and Port Botany, the two-level commercial building and industrial warehouse was built over three stages between 2010 and 2013 and has 15,955 sqm of gross lettable area on 4.75 hectares of land.
It was acquired on a two-year leaseback to ASX-listed IT hardware and software cloud solutions distributor Dicker Data.
The deal was brokered off-market by Trent Gallagher and Edward McFarland of Colliers.
Dicker Data had bought the Captain Cook Drive site in 2007 for $6.5 million.
