This article is from the Australian Property Journal archive
ING Industrial Fund has sold off more assets in Australia, Europe and Canada totalling $A79 million.
IIF has sold two Australian assets, the Minto Distribution Centre in Minto, New South Wales and Campbelltown Distribution Centre in Campbelltown, NSW to a private investor for $23.7 million. The discount to book value is 14%.
In Europe, the fund has sold its sole asset in France, Les Tulipes Distribution Centre, Gonesse, for €18.3 million to a listed real estate development and management company based in France. The sale price represents a net discount to book value of 5%, after allowance for the deferred tax liability provided in IIF’s accounts.
And in Canada a further five retail properties have been contracted for sale on an unconditional basis for $C36.9 million, 18% below book value.
IIF’s chief executive Paul Toussaint said the fund continues to be successful in divesting assets amidst challenging market conditions.
The asset sales in Australia increase the value of concluded transactions to $A233 million since early 2008, with IIF accounting for 13 out of 34 industrial property sales over $5 million within the eastern seaboard states.
The fund is continuing with it divestment program with another 12 Australian assets currently being marketed for sale, with an estimated value of $A300 million.
Meanwhile the fund has completed a number of leases totalling 42,000 sqm.
Notable transactions over the past three months include:
• Westpark Industrial Estate, Erskine Park NSW: Reckitt Benckiser 11,197 sqm
• Interchange Park, Eastern Creek NSW: Manassen Foods 15,735 sqm
• ParkWest Industrial Estate, Ardeer VIC: Gro-Market Logistics 8,170 sqm
In addition, IIF has agreed terms for a recently completed facility of 11,000 sqm at ParkWest Industrial Estate.
As a result, only one facility remains vacant, the current occupancy level for the Australian portfolio is 97.5% by area, up from 95.7% in December 2008.
Toussaint said the fund’s portfolio performance in Australia remains strong despite the volatility.
Australian Property Journal