This article is from the Australian Property Journal archive
IRONGATE has launched an unlisted industrial property fund with the $57.25 million acquisition of a warehouse in Smithfield in Sydney’s west.
The Irongate Industrial Property Fund is the team’s inaugural venture since the 2023 management buyout, is bolstered by seed funding from Irongate and its partner, the Johannesburg-listed Burstone Group (formerly Investec Property Fund). Co-investment from APAC-focused private equity real estate group Phoenix Property Investors further enhances the fund, marking Phoenix’s second investment in Australia through its Phoenix Pan Asia Core Plus Investments Fund.
The fund will focus on low-risk infill sites boasting substantial land holdings.
Graeme Katz, Irongate CEO, expresses optimism about the sustained momentum in the industrial sector, particularly in key infill areas, as demonstrated by the strategic acquisition in Smithfield. He emphasizes the team’s commitment to replicating their proven success, stating, “The Smithfield acquisition is the first of many we intend to make in the short term. We have our sights set on a number of under-rented assets in key logistics hubs across the country.”
Trent Winduss, Phoenix’s Head of Australian Investments, echoes this sentiment, highlighting the enduring partnership with Irongate and expressing confidence in the Australian market and the industrial sector’s potential.
The Smithfield acquisition comprises adjoining properties at 338-350 Woodpark Road and 1 Dupas Street, Smithfield, totaling 33,988 square meters in land area and 17,546 square meters in NLA across eight buildings. The estate, catering to smaller users, currently houses multiple tenants and boasts an attractive 1.7-year WALE, reinforcing its appeal for the fund.
Colliers’ Trent Gallagher, Gavin Bishop, Sean Thomson, and Peter Dale handled the sale.
“This key infill industrial asset was highly sought-after due to its short WALE allowing immediate rental upside for the incoming purchaser,” said Gallagher.
“The Western Sydney industrial market has a vacancy rate at present of 0.2% which is causing significant demand for any up-and-coming vacancies resulting in record rents being paid by tenants on a regular basis,” Bishop added.
Irongate’s portfolio is now valued at well over $2 billion and includes the $1 billion redevelopment of Younghusband in Melbourne’s inner west, a joint venture with Ivanhoe Cambridge; along with multiple joint ventures with Frasers, including the soon to be launched Bradmill site in Yarraville.
