Propertylink Group Secures Industrial Asset as Centuria Make Takeover Bid


Fund manager and investor Propertylink Group has acquired an industrial asset for $20.75 million, reflecting a capitalisation rate of 7.69% and a fully let passing yield of 8.40%.

The asset is located at 12a Rodborough Road, Frenchs Forest, acquired off-market from a private vendor.

This increases the real estate group’s industrial property ownership to 14 with total assets worth $273 million.

Propertylink released a statement on Monday indicating that they had received an unsolicited, indicative and conditional proposal from Centuria to acquire 100 per cent of the outstanding securities by way of Propertylink schemes of arrangement.

The attempted takeover comes after Centuria took a 17 per cent stake in the fund manager earlier this month. The "friendly" move into Propertylink represented a total investment of around $97 million.

The Frenchs Forest asset comprises a prominent and highly functional office and warehouse facility with a total lettable area of 7,490 square metres set on an 8,725 square metre site within the tightly held Frenchs Forest commercial precinct.

Occupancy is currently 82.5% with the major tenant being Integrates Technology Services Limited, a wholly-owned subsidiary of Linfox Group.

The acquisition was part of the Propertylink Australian Industrial Partnership II (PAIP II), which was established in 2015.

Propertylink chief investment officer Peter McDonald said the company zeroed in on the property after identifying strong future prospects for office and warehousing space in the Northern beaches precinct.

“This has led to an uptick in sales and leasing activity throughout the region led by Woolworths who recently leased 6,750 square metres of distribution space in Brookvale to increase proximity to their online shopping customers," he said.

“With improving demand in the area, we think the whole precinct will provide solid rental growth in the next few years which has not been priced into this acquisition.

“The acquisition of this property provides PAIP II investors with a high-quality asset with strong covenants, in an excellent Sydney infill location.”

Propertylink chief executive Stuart Dawes said Propertylink was pleased to expand the successful partnership with Townsend Group and Norinchukin Bank, through the growth of PAIP II.

“Our ground up approach to asset management, led by our strong and experienced local team, gives Propertylink a strategic advantage as we identify opportunities for disciplined acquisitions and generate sustained returns for investors through the property cycle,” Dawes said.

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