In an effort to ensure the expansion of their industrial property portfolio,
Stockland has purchased three industrial properties to add to their collection – a total investment equaling $66.5 million.
Two of the purchased properties are located in Sydney, including Warwick Farm and Botany, and the third property, Laverton North, is located in Melbourne.
“These three high-quality acquisitions support our strategy to profitably increase the size and scale of our Logistics and Business Parks portfolio, which we’ve grown from AUS$1.3 billion at the of the [2013 financial year] to approximately AUS$1.67 billion today," Stockland Chief Executive, Mark Steinert said.
Just last year Stockland bought a 12-hectare Perth industrial site for AUS$53.5 million.
Mr. Steinert also stated that the group was making progress in its strategy to grow its Logistics and Business Parks portfolio subsequent to the purchase of the Sydney properties.
“The three properties are in high growth corridors close to each respective city’s major port and container handling facilities. The three properties are well serviced by major road and rail infrastructure and each property offers excellent flexibility and potential for future improvement,” Group Executive and CEO of Commercial Property at Stockland, John Schroder said.
Warwick Farm
On 1.5 hectares, Warwick Farm is an ‘industrial zoned greenfield development site’ worth AUS$17.2 million, purchased from the Australian Turf Club (ATF) in South Sydney. The plan is for Stockland to develop a multi-warehouse, multi-tenant industrial estate which will contain approximately 52,000 square hectares of GLA. Development of the site is expected to commence late 2015.
“The site at Warwick Farm provides us with excellent exposure to Sydney’s rapidly developing south west corridor. The area will benefit from major freight transport and logistics infrastructure projects, including the intermodal terminal, new airport and future motorway and rail upgrades,” General Manager of the Logistics and Business Parks at Stockland, Tony D’Addona said.
Botany
The Botany property is also a 1.5 hectare industrial property which was purchased for AUS$20.3 million despite it not being listed on the market.
“At Botany, land rezoning from industrial to high density residential and mixed use is creating a distinct scarcity of high-quality industrial premises, the area’s gentrification is precipitating a sharp appreciation in land values and creating a shortage of traditional industrial stock for sale or rent, increasing face rents and yields,” Mr. D’Addona said.
Laverton North
The purchase of the 9.8 hectare property from 72-76 Cherry Lane in Laverton North, Melbourne cost Stockland AUS$29.0 million in a sale and leaseback from Toll Group, despite the property not being listed on the market.
“The property at Laverton North is located in one of Melbourne’s prime industrial areas. The facility includes a modern, high clearance warehouse with a combination of A grade and elevated loading docks. Located on a corner plot with dual street frontages, the property provides excellent versatility for future development and improvement,” Mr. D’Addona said.
