Mirvac has recently announced it has entered into a put-and-call option with ISPT to acquire an industrial site at 274 Victoria Road, Rydalmere NSW, for a total consideration of $47.6 million.
The transaction represents an initial passing yield of approximately 6.7 per cent, with total returns in line with the Group's IRR targets.
Located in the tightly held industrial precinct of Rydalmere, the 36,000 square metre site is just two kilometres north-east of the Parramatta CBD, and lies in close proximity to several major roads, including James Ruse Drive, the M4 Motorway, the Cumberland Highway and Parramatta Road.
The existing building, comprising approximately 18,250 square metres of warehouse space and 4,540 square metres of office space, is currently 100 per cent leased to Thales Australia Limited, a provider of communication and security solutions in both the commercial and defence sectors. Expiring in 2022, the lease is on a triple net lease basis with fixed annual increases.
Mirvac's Group Executive, Industrial, Stuart Penklis said, "This is an excellent transaction for the Group, providing Mirvac with steady passive income over the long term, while reinforcing our strategy of having an overweight exposure to Sydney, Australia's strongest performing industrial market."The transaction was introduced to Mirvac by Gavin Bishop and Roger Miller of Colliers International with the settlement of the site expected in July 2016.