This article is from the Australian Property Journal archive
THE Propertylink Australian Industrial Partnership has paid $106.75 million for a portfolio of 10 industrial assets across New South Wales and Victoria.
Four assets were purchased from Abacus Property Group and six assets from Abacus Diversified Income Fund II (ADIF II).
Abacus Property Group’s managing director Dr Frank Wolf said the sales would deliver proceeds of approximately $43.65 million for the group, circa 9.4% above the aggregate 31 December 2013 book value.
The properties sold by Abacus were 4-8 Sylvania Way, Lisarow NSW; 10 & 12 Pike St Rydalmere NSW; 1 Orielton Rd Smeaton Grange NSW; 36-52 National Boulevard Campbellfield VIC.
“We are very pleased to provide this large portfolio to the market at this point in the cycle and achieve very positive sales above the aggregate book value,” Wolf said.
The ADIF II assets will deliver proceeds of approximately $63.1 million to the fund. The price is approximately 4.5% above the December book value. The properties sold are: Chullora Business Park, Chullora NSW; 13 Boundary Road, Northmead NSW; 1-5 Lakes Drive, Dingley VIC; 144-168 National Boulevard, Campbellfield, VIC; 571 Mount Derrimut Road, Derrimut VIC; and 63-73 Woodlands Drive, Braeside VIC.
This is PAIP’s largest acquisition since it was formed in March and will increase the total number of assets in its portfolio to 17, valued at $203 million.
Propertylink’s managing director Stephen Day said these acquisitions are evidence of the group’s strategic intention to grow its industrial property holdings nationally.
“With all its assets located in Victoria and NSW, the Abacus deal delivers strong and stable cash flows to PAIP, and complements its current holdings in Brisbane, Sydney, Perth and Melbourne. The entire portfolio now has a 97^ occupancy with a weighted average lease expiry of 4 years.
“PAIP portfolio assets now range from some solid long lease assets with excellent tenant covenants blended with traditional multi-let estates and single tenant distribution centres with shorter WALEs which present an opportunity for Propertylink to add value or to achieve higher yields and total returns with hands on asset management,” he added.
Propertylink’s head of property Peter McDonald said the portfolio would benefit from strong asset management.
“The 9.4% property yield is very attractive, however our team is looking forward to working on the various value-add initiatives that include potential land sub-division, strata sub-division, and bulky goods development.
“We have just added former JLL director Casey Greenberg to the Propertylink asset management team and his appointment has come at an opportune time with this acquisition,” McDonald said.
Matt Haddon of CBRE and Tony Iuliano of Colliers brokered the transaction.
Propertylink manages PAIP and is invested in it alongside core investors Goldman Sachs and Grosvenor Group (the privately-owned international property group). The vehicle has scope to expand the value of the total portfolio to $600 million and is expected to announce further acquisitions in coming months.
Property Review
