Property giant GPT Group has snapped up five logistics properties in Sydney for $212 million as it focuses on growth in the sector.
The Sydney assets have a total lettable area of 88,200sq m, a combined weighted average lease expiry (WALE) of 8.6 years and initial passing yield of 5.4 per cent.
Listed on the ASX since 1971, GPT owns and manages a $14 billion diversified portfolio of retail, office and logistics property assets across Australia.
GPT chief executive Bob Johnston said the acquisitions and developments are consistent with GPT’s strategy to grow in the logistics sector.
“The assets are all well located with good access to transport links and will benefit from ongoing demand and constrained supply,” he said.
At its annual results earlier this year, Johnston said the group planned to increase its exposure to the logistics sector, targeting growth of its $1.9 billion logistics portfolio to $3 billion.
Continuing its industrial moves, the listed group has also commenced work on a 26,000sq m logistics development at Truganina in Melbourne’s west. GPT secured the 15-hectare site in February this year for $36 million.
In Brisbane, GPT has secured a ten-year lease for a 20,500sq m logistics development in Berrinba.
Other real estate assets GPT owns include Melbourne Central and Highpoint Shopping Centre, Australia Square, 1 Farrer Place and Citigroup Centre in Sydney and One One One Eagle Street in Brisbane.
Settlements for the latest Sydney assets are expected to be completed by early July 2019.