2 July 2014
Sydney-based property investment and asset management company, Propertylink, has acquired two assets located in Victoria for a combined $23.54 million.
82 Taryn Drive, Epping, and 18-24 Ricketts Road, Mount Waverley, have been acquired under the Propertylink Australian Industrial Partnership (PAIP), which currently has $230 million in assets Australia-wide.
Propertylink Managing Director Steve Day said the assets build off Propertylink’s 14-year track record in industrial ownership and development, already demonstrated by the $1.7 billion in assets and projects in Australia.
“The Epping asset features 100 per cent occupancy from a single tenant, Stanley Black & Decker, a Fortune 500 company and one of the world’s largest and most renowned provider of industrial tools, household hardware and security products,” Mr Day said.
“We particularly like the asset as it is very modern and functional and has an attractive 8.75 per cent yield. We expect yields for these types of high-quality assets to continue to tighten in the short to medium term.”
The Gross Building Area (GBA) for the Epping property is 10,500 square metres while the GBA for Mount Waverly is 8,806m2.
Propertylink’s Head of Property, Peter McDonald, said the Mount Waverly asset features 50 per cent office and 50 per cent warehouse accommodation, with 82 per cent current occupancy.
“This is located in the tightly-held prime south-east precinct of Melbourne and we see a real opportunity to bolster the property yield to around 11.5 per cent and add value through strata sub-division,” Mr McDonald said.
“We continue to see significant amounts of capital chasing large prime, long lease assets. However, our strategy is to look for opportunities to add value through repositioning of assets to achieve higher returns.”
The latest acquisitions follow the recent purchase of 10 industrial properties from Abacus Property Group for $106 million, bringing the total value of PAIP assets in Sydney, Brisbane, Melbourne and Perth to $230 million.
The vendor on Mount Waverly was AMP Capital Funds Management Ltd on behalf of the ‘Property Income Fund’, and the transaction was brokered by Tony Iuliano of Colliers.
The Epping transaction was brokered by Chris O’Brien of CBRE.