Browse all categories | Subscribe My Account | Logout
Browse all categories
< Back

Ascendas pays $34m for Abacus industr

People & Companies / Latest News

Australia

May 01 2018

Add to Favorites

Share this Article:

Ascendas REIT has paid $34 million on a 6.85 per cent yield for a fully-leased industrial facility at West Park Industrial Estate, Derrimut, in an off-market deal brokered by Dawkins Occhiuto Director, Chris Jones.

Purchased by vendor Abacus in late 2013 for $20.95 million, the property comprises a single level, 31,048 square metre (GLA), office/warehouse on a 56,330 square metre site with 55 per cent site coverage.

Located approximately 16 kilometres west of the Melbourne CBD with excellent freeway access, the high quality warehouse features 12 recessed loading docks, internal clearance of up to 13 metres, and car parking for approximately 220 vehicles.

The property was sold fully leased to three tenants with a total passing net income of $2,328,600 and a three year WALE by income. 

Mr Jones said the highly flexible configuration would facilitate a split into four tenancies or consolidation into one or two tenancies. 

``This is a high quality industrial facility which offered a diverse and secure tenancy profile and solid growth prospects in one of Australia’s most sought after industrial locations and with the potential for further development.

``In summary, it ticked a lot boxes in a market short of quality investment opportunities and the price reflected that,’’ Mr Jones said.

He said there had been a definite pick up in enquiry for particularly high-end industrial property in 2018 due to a shortage of quality investment stock across the board in commercial property, and the fact that industrial property continued to offer more attractive yields in a commercial market which had seen several years of yield compression.
   
Mr Jones said the surge in demand for industrial property was also a product of the continued evolution of warehousing and distribution facilities forced by the rise of e-commerce which had driven greater tenant demand and had the potential to put upward pressure on rents.

``Industrial rents have started to see uplift, having been stagnant for years with upward movement in e-commerce, increasing land values and constraint on existing A Grade supply, particularly for industrial facilities in excess of 15,000 square metres, ’’ Mr Jones said. 

SOURCE:

img

You may also like...


Load More

bannerImage
bannerImage

Login into your MP Report account

Forgot my password

Sign up to the MP Report

Creating an account with MP Report allows you to save articles and update your preferences to filter the content based on your interests and what content you would like to receive from us via our email alerts and newsletter.

SIGN UP HERE >