The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
5
print
Print
IndustrialAna NarvaezMon 05 Aug 19

EG’s New $800m Fund Buys Distribution Centre

8a954754-a422-40c3-892f-c878d1927efa

EG’s new $800 million fund has made its first acquisition, a $36 million distribution centre in south Sydney.

The Sydney-based fund manager acquired the 15,955sq m industrial centre, located about 30 minutes from the Sydney Airport, on an initial yield of 5.8 per cent.

The vendor, ASX-listed distributor Dicker Data, has entered into a $2.1 million annual leaseback arrangement with EG while Dicker builds a new, 70 per cent larger, distribution facility on a neighbouring site.

Dicker Data chief executive David Dicker said that the initial leaseback arrangement with EG is for a period of 2 years with an option to extend if required.

Dicker acquired the 230 Captain Cook Drive asset for $6.5 million in 2007 and picked up the adjacent 17-hectare block at 238 Captain Cook Drive for $18 million in 2016.

The open-ended Australian Core Enhanced Fund was announced in June with a mandate to target underperforming office, retail and industrial assets.

The fund launched with $800 million in equity commitments from four institutional investors and is targeting an additional $500 million in investment over the next 12 months.

Related: REITs Boost Coffers as Investor Appetite Ramps Up

▲ Dicker has sold 230 Captain Cook Drive (pictured) for $36m, funds will go toward the construction of a new facility and to pay down debt.


Savills second quarter industrial briefing recorded significant uplift in industrial land values of more than 60 per cent in some pockets of South Sydney.

According to the Savills, development of industrial supply in Sydney returned to pre-GFC levels over the last 12 months, with a notable increase in leasing activity in Sydney’s industrial sector.

EG fund head Daniel Farley said that newly-constructed Kurnell facility is located within a “gentrifying” precinct with strong tenant demand.

“We are strong believers in the underlying drivers behind the broader industrial market and this asset is perfectly positioned to benefit given the short leaseback period,” Farley said.

Meanwhile, Dicker shares wobbled earlier this month — falling more than 16 per cent on 31 July and prompting a price query from the ASX.

Dicker responded that the $36 million sale of the distribution centre was kept strictly confidential.

“The share price is a function of the market and out of the control of the board,” Dicker said in a note to the ASX.

The IT distribution business experienced a huge uplift in its share price over the last year, rising from 2.99 in August 2018 to closing out at $5.46 on Monday.

IndustrialAustraliado not useFinanceReal EstatePlanningPlanningSector
AUTHOR
Ana Narvaez
The Urban Developer - Editorial Director
More articles by this author
ADVERTISEMENT
TOP STORIES
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
5 Min
Korean coliving hero
Exclusive

Disconnection by Design: Why ‘Untech’ is the Next Big Amenity

Clare Burnett
5 Min
Global Shifts Redraw the Map for Australia’s Office Market
Exclusive

Office Eyes Slowdown as New Stock Supply Becomes a Trickle

Vanessa Croll
7 Min
Salta MD Sam Tarascio
Exclusive

Why Salta Won’t Break Ground on $400m Pipeline

Leon Della Bosca
7 Min
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
View All >
Darwin Sentinel Industrial East Arm Deal hero
Industrial

Sentinel Property Expands NT Portfolio with $57.4m Buy

Phil Bartsch
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
Industrial

Centennial’s Paul Ford: From Vision to Industrial Vanguard

David Di Marco
The sector heavyweight will explore market shifts, last-mile growth and capital strategies at our Industrial Summit next…
LATEST
Darwin Sentinel Industrial East Arm Deal hero
Industrial

Sentinel Property Expands NT Portfolio with $57.4m Buy

Phil Bartsch
2 Min
a land lease community home in white at a gemlife development, a type of home which could be the answer to the housing crisis
Residential

‘We are the Solution’: Land Lease Shake-Up Stirs into Life

Renee McKeown
5 Min
Industrial

Centennial’s Paul Ford: From Vision to Industrial Vanguard

David Di Marco
3 Min
Planning

Bipartisan NSW Planning Reform a Welcome Surprise

Patrick Lau
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/egs-new-800m-fund-makes-first-acquisition