15 December 2015
Property investment and asset management company, Propertylink, has secured two industrial properties in key locations in Queensland and New South Wales for a combined purchase price of $45.56 million.
Propertylink is a leading Australian real estate manager with more than $2 billion in assets under management and over $500 million of assets acquired throughout 2015.
In the latest transaction, Propertylink acquired a newly developed logistics property with a long lease in the Gold Coast Yatala Enterprise Area for $29 million.
The property at 1 Lahr’s Road, Ormeau has a net lettable area of 9,590 square metres (sqm) and is 100 per cent leased for 11 years to Seabest International, a major frozen seafood supplier in the Australian retail market.
The property was acquired at a 7 per cent yield and follows the Rand refrigerated logistics assets purchased by Propertylink in 2013 along with the 2014 acquisition of the warehousing facilities at Melbourne’s fresh fruit, vegetable and flower markets for $90 million.
Stephen Day, Managing Director of Propertylink said: “The purchase at Ormeau adds to our growing portfolio in Australia’s fresh food industry which is a sector that is growing trade significantly with our near Asian neighbours,” Mr Day said.
The Propertylink Australian Industrial Partnership II (PAIP II) has also acquired a logistics property located in one of Sydney’s most tightly held industrial precincts for $16.56 million.
The property at 27 Frank Street, Wetherill Park is located 30 kilometres west of the Sydney CBD and 10 kilometres west of the Parramatta CBD. The property has a net lettable area of 13,865 sqm and is 100 per cent leased for five years to Border Express, a national transport and distribution services company.
The property was acquired at an 8.3 per cent yield and has a total site area of 41,720 sqm with significant potential to add further buildings given the current site coverage ratio of only 33 per cent.
“The acquisition at Wetherill Park provides us with an opportunity to apply Propertylink’s active management approach to drive the value in these types of assets.
“Propertylink has created a niche in the market with this approach and we have another outstanding value-add opportunity to reposition the property given its strategic location in a highly sought-after location in western Sydney,” Mr Day said.