13 August 2014
Property investment and asset management company, Propertylink, has purchased a 23,452 square metre industrial property at Minto in Sydney’s south west, boosting the combined value of its Propertylink Australian Industrial Partnership (PAIP) to $360 million.
The property at 50 Airds Road is the 22nd purchase by PAIP in 2014 and reflects the strength of the south west Sydney industrial market.
Commenting on the $21.6 million acquisition Propertylink Head of Property, Peter McDonald said: “We have specifically targeted Sydney’s south west as recent and planned infrastructure projects will have a significant impact on the rental and capital growth in the area.
“The widening of the M5 Motorway to four lanes in either direction has substantially improved the traffic flow on the M5 Motorway and other planned infrastructure projects for the south west will be positive for the industrial property market,”
Mr McDonald said.
Other projects in the region include:
The Airds Road property is leased to 3 tenants with an overall weighted average lease (WALE) expiry of 3.5 years.
Stuart Dawes, Head of Investment Management of Propertylink said: “The PAIP portfolio is now highly diversified by geography and location, with a 35% exposure to Sydney, 47% Melbourne and 16% Brisbane.
“It has a combination of short WALE value add single and multi tenant assets, plus some strong core assets giving a combined overall WALE of 4 years.
“We will continue to search for more opportunities to bolster PAIP towards the targeted $600 million of assets, with a focus on solid yielding assets that can continue to enhance the income profile of PAIP to maintain and improve the strong double digit equity yield that is currently being achieved,” Mr Dawes said.
The transaction was brokered by Gavin Bishop, a director of Colliers International.