13 • Aug • 14

Propertylink in $21.6 million Minto Purchase

Media release

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:

  • A 220 hectare site at Moorebank has been selected by the State Government as the preferred intermodal site for Sydney. This intermodal is close to the final stages of approval and import/export operations are expected to start in late 2017.
  • Construction on the $2.4 billion Badgerys Creek Airport is expected to commence in 2017 with completion due 2020. The project includes linking the $1.25 billion East West Airport Motorway to the M7, with construction to start in late 2014
  • The M9 Outer Western Orbital will link the North West and South West Growth Centres and the broader Western Sydney area. More than $4 million has been allocated in the State Budget for strategic planning investigation and the plans for preserving land for the corridor go on public exhibition next year.

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.

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