AMP Lists $110m Logistics Portfolio

Fund manager AMP Capital has listed a portfolio of three industrial assets in Sydney, as it looks to benefit from a boost in infrastructure spending in the state.

The portfolio, worth an estimated $110 million, includes properties at 104 Vanessa Street, Kingsgrove, 64 Biloela Street, Villawood and 30-32 Bessemer Street, Blacktown.

The three assets make up half the portfolio JP Morgan listed in mid-2016, which AMP acquired for $250 million at the time.

The portfolio in its entirety offers more than 50,000sq m of building area a WALE of 7 years and a combined annual net passing income of $5,848,713 million.

Tenants include Shriro, VIP Plastic Packaging and Snack Brands Australia.

Industrial property is among Australia’s most sought-after real estate, with e-commerce, tech innovation, and infrastructure spending bolstering investment in the sector.

Sydney accounted for about 40 per cent of the national industrial transaction volumes in 2018.

Related: Industrial Sector Braces for $21bn Capital Injection in 2019

Colliers’ national director of industrial Gavin Bishop said that the portfolio’s scale, strong leasing covenants and long WALE would be key selling factors.

“Investors are rarely presented with the opportunity to acquire a 100% Sydney located portfolio of this quality and scale,” Bishop said.

“We anticipate significant demand for this portfolio given the low interest rate environment and robust economic fundamentals in Australia, as well as the weight of capital chasing industrial investments.”

Colliers International and JLL have been appointed to market the portfolio, which is being sold via international expression of interest campaign.