This article is from the Australian Property Journal archive
VAUGHAN Constructions has sold a refrigerated logistics facility at Prestons in western Sydney for approximately $70 million in a deal negotiated by CBRE.
The asset was offered for sale via a private placement program with CBRE’s Matt Haddon, Chris O’Brien and Angus Klem on behalf of Vaughan.
Haddon said the property was a rare, premium grade industrial investment opportunity and was the first of its kind offered to the market in 2014.
He added that the sale result reaffirms the quality of the investment product that Vaughan delivers which is always well received and highly sought after.
“This acquisition reinforces the rapidly emerging trend of institutional investors seeking exposure to the refrigerated logistics market. Australia’s reputation as the “protein fountain” of Asia Pacific has seen yields tighten significantly in this market, as investors become more comfortable with the long-term occupancy security that the local food sector now provides.
“The property provides a genuine, state of the art investment in one of Australia’s premium industrial precincts, strategically positioned within a prime industrial growth corridor and neighbour to many of Australia’s most well regarded occupiers in Aldi, Mainfreight, Bunning’s, Woolworths, HPM LeGrand, Atlas, Scott’s Refrigerated Transport and Volgren,” Haddon continued.
O’Brien said historically Prestons has witnessed a slightly slower rate of development as opposed to neighbouring logistics hubs such as Moorebank and Eastern Creek, primarily due to the fractured ownership of land largely been held by private families.
“However, over the past five to 10 years major investment houses with an industrial specific focus, such as Goodman, Mirvac and Aviva, have taken key stakes in the precinct as sites become further amalgamated,” he added.
Klem said the suburb will benefit the government’s planned Intermodal Terminal Project at nearby Moorebank, involving the development of freight terminal facilities linked to Port Botany by rail, increasing Sydney’s rail freight capacity and reducing road freight on Sydney’s road network.
The buildings have a combined net lettable area of 22,100 sqm and are situated on a 5.047ha land parcel. They are securely leased to Ingham Enterprises on a 15-year lease commencing upon completion, and Salmat Mediaforce on a 10-year lease on the smaller facility. The property has a long WALE of circa 14 years and generates a combined net income of $4,631,687 per annum.
Australian Property Journal
