The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JOIN US FOR A ONE-DAY DEEP DIVE INTO THE FUTURE OF THE INDUSTRIAL SECTOR
FIND OUT HOW THE INDUSTRIAL MARKET IS CHANGING IN 2026
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
11
print
Print
Self StorageRenee McKeownWed 26 Aug 20

REITs Go On Industrial Spending Spree

8b06ef25-a2c6-4c85-a232-f49d1db1c484

The industrial sector is continuing to churn during Covid, with almost $165 million in transactions announced over the last week.

Sydney-based fund manager EG picked up a $38.2 million multi-let industrial facility in Ingleburn and gaining approval on a $44 million site transformation at the Northern Beaches Business Park.

Charter Hall also made a move in the sector, buying 10 hectares of land in Perth, including a dairy processing facility, for a combined total of $63.5 million.

Meanwhile, Cromwell Funds Management sold a distribution centre in South Australia for $63.05 million, which they purchased for nearly half that price in 2014.

The industrial sector has proven resilient during the pandemic, with major real estate investment trusts recording positive growth in industrial portfolios, with high occupancy and stronger valuations in annual results.

EG goes on $72m buying spree

EG had a busy start to the week with the acquisition of a $38.2 million multi-let industrial facility at 5 Williamson Road, Ingleburn, in the Sydney’s south-west.

The facility—within an established industrial precinct—consists of three separate structures, delivering 18,514sq m of lettable area.

The fund manager also picked up a three-storey office building at 60 Pacific Highway, St Leonards for $33.8 million on a net passing yield of 5.5 per cent.

Pushing the group’s diversified investments higher was approval for a $44 million redevelopment of 100 South Creek Road, Cromer.

Formerly the headquarters of Roche pharmaceutical company, the site will be transformed into self-storage facilities, commercial office space, a cafe and 11 warehouse and distribution units.

▲ The Roche pharmaceutical building redevelopment is part of EG’s Yield Plus Infrastructure Fund No. 2, an AU$750 million fund that launched in 2016.


EG development director Grant Flannigan said the project was slated for completion in mid- to late-2021.

“The project offers the potential for a diverse range of local urban service outcomes, including creative and hi-tech industries, modern warehousing, local business ‘start-up’ incubators and a place for innovation,” Flannigan said.

Important heritage elements of the site will be preserved for sympathetic adaptive re-use, including former Roche office buildings, a residence, associated landscape features and the iconic hexagonal five-storey tower.

Charter Hall buys $63m industrial sites

Charter Hall acquired 22 Geddes St, Balcatta, Western Australia for $59 million and the adjoining undeveloped site at 20 Kenhelm Street for $4.5 million.

Combined the site area is 10.2 hectares with the Brownes Dairy facility having a total area of 8.2ha and surplus land of 2.0ha.

▲ The Brownes Dairy processing facility has a triple net lease structure, with the tenant responsible for any ongoing costs in relation to the maintenance and upkeep of the property.


The Brownes Dairy processing facility comprises a total gross lettable area of 26,392sqm, representing 32 per cent site coverage.

The facility incorporates a mixture of interconnected buildings including administration offices, milk receiving area, processing and packaging area, chillers, freezers, cold store warehouse, ambient warehouse and freestanding canteen.

Charter Hall direct fund manager Miriam Patterson said the addition of this facility enhances the exposure of one of their funds, DIF4, to the non-discretionary food industry and supports the provision of critical milk processing infrastructure for the state.

“Brownes Dairy is Western Australia’s oldest dairy company, established in 1886, with diverse business operations including production of milk, yoghurt and beverages,” Patterson said.

Brownes Foods Operations Pty Ltd has leased the property on a triple net basis with 13.9 years remaining on the lease and two ten-year options; the lease has fixed annual rent increases of 3.25 per cent.

Cromwell sells SA logistics site

Cromwell Funds Management exchanged contracts for the sale of the Rand Distribution Centre in Direk, South Australia for $63.05 million.

The asset was initially acquired in 2013 with an “as if complete” value of $32.75 million and the sale represents an 18.96 per cent premium to the asset’s book value.

▲ The Rand Distribution Centre is located 27km north of Adelaide CBD and the sale is expected to settle in mid-December. Image: ecp.Pacific


The purpose-built cold storage facility has a 15-year remaining lease term to Rand Transport, a wholly-owned subsidiary of Anchorage Capital Partners.

JLL’s Tony Iuliano and Adrian Rowse sold the asset on behalf of Cromwell and its C12 trust.

Iuliano said both off-shore investors including new entrants wanted to deploy capital into Australia.

“Refrigeration distribution centres have become an increasingly popular investment class in recent years primarily because of the longer lease stability in income,” Iuliano said.

“They have drawn increasing attention in the current environment due to domestic consumer demand and the rise in non-discretionary retailing.

“Industrial assets with strong underlying leasing covenants in close proximity to major infrastructure are highly sought-after.”

InfrastructureIndustrialAustraliaConstructionReal EstatePlanningPlanningDeal
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
London skyline near the walkie talkie tower showing the 85 gracechurch street development.
Exclusive

Basilica to Business: London Office Tower’s Historic Rework

Renee McKeown
6 Min
Hotel Indigo Adelaide hero
Exclusive

Neighbourhood Hotels Reinvent Urban Hospitality

Clare Burnett
5 Min
Melbourne CBD empty site
Exclusive

Melbourne Developers Hit Back at Mayor’s ‘Lazy Landlord’ Plans

Leon Della Bosca
7 Min
The land value of many fuel retailing sites is outweighing their operational value.
Exclusive

Shrinking Servo Network Heralds Development Prospects

Patrick Lau
7 Min
Sydney airspace
Exclusive

Money Out of Thin Air: The Multibillion-Dollar Rooftop Housing Play

Vanessa Croll
8 Min
View All >
Residential

Spyre Moves Ahead with Bulimba Luxury Apartments

Lindsay Saunders
Hines Property Twin Street tower HERO
Student Housing

Hines Wins Approval for 36-Storey Adelaide PBSA Highrise

Leon Della Bosca
Sponsored

Why Human-Centred Design Drives Commercial Success

Partner Content
Rothelowman says design that prioritises lived experience is critical to the success of next-gen student and senior hous…
LATEST
Residential

Spyre Moves Ahead with Bulimba Luxury Apartments

Lindsay Saunders
2 Min
Hines Property Twin Street tower HERO
Student Housing

Hines Wins Approval for 36-Storey Adelaide PBSA Highrise

Leon Della Bosca
3 Min
Architecture

Why Human-Centred Design Drives Commercial Success

Partner Content
5 Min
Industrial

Explore the Future of Industrial Development

David Di Marco
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/industrial-sector-churns-through-165m-transactions