ASX-listed Irongate Group, the former Investec Australia Property Fund, has beefed up its east coast logistics portfolio after buying the Brisbane warehouse site of online auction house Grays for $24.75 million.
Irongate, which is dual listed on the Johannesburg Stock Exchange, acquired the office and warehouse property at 153 Main Beach Road, Pinkenba, in the city’s eastern suburbs, from Sherrin Racing founder Michael Sherrin on a yield of 5.3 per cent.
It is the second Brisbane industrial property acquired this year by Irongate, after it paid $15.6 million for an under-construction warehouse in January. The two deals lift the value of its industrial portfolio to just over $370 million.
Irongate also owns 12 office properties valued at $771 million.
The Pinkenba property was constructed in 2018 and comprises 1852 square metres of office and warehouse accommodation and 33,615 square metres of hardstand used for vehicle storage. Grays’ lease runs until March 2028 with fixed annual rental escalations of 3.5 per cent.
Irongate chief executive Graeme Katz said the acquisition lifted the trust’s exposure to industrial property to 32 per cent by both income and value.
“We believe the Brisbane industrial sector currently offers relative value,” Mr Katz said.
In Adelaide, Hong Kong-listed asset manager Value Partners sold a St Clair industrial site in Adelaide’s north-west for $18.8 million on an initial yield of 5.6 per cent.
The 15,000 square metre warehouse at 589-599 Torrens Road is leased to Trident Plastics, a manufacturer of residential rubbish bins and water tanks, until 2028. It was acquired by Perth-based property investment firm Ascot Capital.
The vendor, Value Partners, manages almost $20 billion of assets. It was co-founded in 1993 by Malaysian Rich Lister Cheah Cheng Hye.
CBRE’s Jordan Kies, Chris O’Brien and David Reid managed the sale of the almost three-hectare site on behalf of the Value Partners Asia Pacific fund.
“The sale price reflects a significant premium to the book value of the property, which is an excellent outcome for investors in the fund,” said Rachel Tong, Value Partners managing director and head of real estate private equity.
“While we are exiting this asset, the fund continues to look for yield accreditive opportunities in Adelaide and elsewhere in Australia given demand from our investors for quality assets in a stable market.”
Value Partners bought the St Claire property in September 2018 and has repositioned the asset over the past 18 months, including facilitating the site’s rezoning to residential use.
“Investor demand for industrial assets in South Australia has increased significantly in recent years, with the COVID-19 pandemic having further bolstered buyer interest given the resilience of the industrial and logistics sector,” Mr Kies said.
Article Source: www.afr.com
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