This article is from the Australian Property Journal archive
EG Vineyard Property Trust has acquired a multi-tenanted industrial property, as it continues to target stable income cash flows with the potential for capital growth.
The property, located at 172 Commercial Road, Vineyard NSW, is comprised of 4.8-hectares of multi-tenanted industrial space in the north west growth corridor of Sydney.
“The property, which is leased to 9 tenants with a WALE of 3.4 years was secured on an attractive 7% initial yield, with potential for rental growth through additional leasing and repositioning,” said Sean Fleming, head of capital transactions at EG.
Additionally, the site is a mere 7km from the Rouse Hill Town Centre and within 50km of the Sydney CBD, with the region reportedly experiencing an “infrastructure boom” after the Northwest Metro railway line was established and nearby residential expansion in Kellyville and Box Hill.
The site was acquired from Central Element and was negotiated by Neil Cooke of Savills Australia.
The transaction comes after EG’s acquisition of another multi-let estate earlier in the month, with the $32 million purchase of a 95% occupied asset in Queensland.
The acquisition was an investment by EG private Wealth Division, which targets stable income cash flows, offering an average of 8.00% p.a., with potential for capital growth.
“The fund is looking to continue investing in multi-use industrial real estate, offering high income yield with strong capital-growth potential in important growth corridors,” said Rodney Walt, head of private wealth at EG.
EG currently has a $4.3 billion development pipeline, with 16.7% per annum in realised IRR for institutional funds.
