This article is from the Australian Property Journal archive
VANTAGE Property Investments has cashed in on demand for industrial properties by selling three assets for $17.6 million on an overall passing yield of 7.4%.
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:”;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”,”serif”;
mso-fareast-language:EN-US;}
The transactions include:
– 342 Cooper St Epping in Melbourne`s north, which sold for $6 million on a 6.4% yield to a private investor;
– 23 Fiveways Boulevard, Keysborough in Melbourne`s south-east, which sold for $6.5 million on a 7.6% yield to Australian Unity;
– 22-24 Howleys Rd Notting Hill also in the south-east, which sold for $5.1 million on an 8.4% yield to South Australian based Harmony Property Syndication.
The properties at comprises four buildings totalling 10,421 sqm on 23,475 sqm of land and were sold subject to five to 10-year leases with an average WALE of 5.4 years and a combined rental income of $1.318 million.
Vantage director Hamish de Crespigny said the assets were acquired during the peak of the GFC, when industrial yields were most depressed and, having extracted as much value as was deemed possible, they were sold to capitalise on current strong market conditions.
“Our hands on approach and active asset management strategies positioned the assets in the best possible situation to sell, achieving 25.7% above the most recent valuations and delivering exceptional results for investors with a capital return of more than 40%.
“Ultimately the portfolio was very well positioned for maximum growth and that’s what it delivered,” de Crespigny said.
Savills industrial directors Ben Hegerty and Chris Jones brokered the deals in conjunction with CBRE.
“The portfolio sold for a total of $17.6 million which represented an overall passing yield of 7.4% and an average building value rate of $1,754 a sqm which is very high,” Hegerty said.
“Overall, this was a very strong result for Vantage but at the same time these assets provided a fantastic investment opportunity for the purchasers with solid lease profiles and significant potential upside in what has become a very good market for industrial property,” Jones said.
Hegerty said Savills has witnessed a recent surge in enquiry and transactions for large scale assets. The agents have sold over $150 million worth of industrial properties in the last four months.
Australian Property Journal
