This article is from the Australian Property Journal archive
THE Johannesburg Stock Exchange-listed Investec Australia Property Fund has acquired an office and warehouse complex at Macquarie Park in Sydney’s north-west.
IAPF has paid $23.255 million for the 113 Wicks Rd Macquarie Park property, located 12km from the CBD. The three-level A-grade building comprises 3,114 sqm of office and 3,164 sqm of warehouse space along with 148 car parking bays, set on a site of 6,812 sqm.
The property is 100% occupied and the tenants include Telstra, the New South Wales state government and Mine Site Technologies, on a weighted average lease expiry (WALE) of 4.2 years and annual rental growth of 3.5%.
The acquisition will be funded through the Fund’s existing debt facility and gearing post the acquisition will be 31.8%.
IAPF CEO Graeme Katz said the latest acquisition increases the fund’s total portfolio to over $517 million.
“The acquisition aligns well to the Fund’s strategy of investing in well-located, high quality assets. The property is located in a prime position in one of Sydney’s most established office precincts and its unique mix of office and warehouse accommodation has attracted quality tenants.
“The average office rents at the property are $275/ sqm, which compares favourably to rents in other Sydney metropolitan markets including North Sydney ($600/ sqm), Parramatta ($445/ sqm), Chatswood ($480/ sqm) and Rhodes ($380/ sqm),” he added.
“The property is adjacent to the North Ryde Station High Density Residential Precinct, which will ultimately provide for 2,700 apartments and accommodate 5,000 residents within the next five years. There is a strong possibility that the property will achieve an upzoning to a higher density zoning permitting residential development as part of a mixed use development. We believe that this zoning outcome could significantly increase the value of the property over time,” Katz said.
Australian Property Journal
