Property investment group Forza Capital has kicked off major industrial transactions for the year by acquiring a major Blackburn asset for $31.5 million.
Located in Alfred Street in Melbourne’s eastern suburbs, the asset was from the Perth-based GM Property Group on a passing yield of 6.6 per cent.
It comprises 20,400 square metres of warehousing and ancillary office space on a 41,000 square metre site.
GM purchased the asset for $17.5 million in April 2015 with a 50 per cent vacancy, however this divestment saw the company achieve an approximate 80 per cent increase in value in what was supposed to be an eight-year investment.
Transacted off-market by CBRE’s Rory Hilton, the property was sold fully-leased to a number of tenants including a 50 per cent lease to Gainsborough Hardware.
GM has built an industrial investment portfolio of 10 predominantly east coast assets since 2012 with a total value of circa $180 million.
The company has not been an active industrial buyer over the last 18 months, but director Blair Gerrard said GM remained on the look-out for value opportunities across a broad range of asset classes and locations.
“Our mandate is not to build funds under management for the sake of it. If an asset divestment makes compelling sense on merit, we will sell regardless of our initial investment strategy.”
The group’s most recent acquisitions have been development projects in Perth with the purchase of a prominent development site in Scarborough earmarked for a circa $28 million, 53-unit residential project, as well as multiple broad-acre development sites that will be released over the next 2-5 years, collectively yielding more than 300 residential lots.