Arrow shoots high with $280m-plus last mile portfolio sale
15 Britton St in Smithfield is being sold as part of $280m-plus last mile industrial property portfolio.
Sydney-based global investment firm Arrow Capital Partners and US investment giant Starwood Capital are selling a $280m-plus last mile industrial property portfolio in one of the largest plays in the sector this year.
The move comes as the pair look to carve off the properties from a 12-strong national portfolio of office and industrial assets worth more than $760m that were held by Altis Property Partners which they recapitalised in 2021.
They have added value to the holdings, which could also deliver an incoming buyer growth as industrial rents continue to soar.
Big investors are chasing industrial assets as they are one of the few property classes to show growth at a time when traditional sectors, like offices and retail, are under pressure.
Arrow Capital Partners co-owns and manages the entire portfolio and said it was preparing to tap demand for last mile, in-fill industrial assets with the sale of an eastern seaboard portfolio of assets.
Real estate agencies CBRE and Colliers have been appointed to steer the sale of the nine assets, which are expected to generate strong interest at both a portfolio level and from individual owner occupiers and investors.
The properties have a combined gross lettable area of more than 110,000sq m and occupy more than 300,000sq m of land in Sydney, Melbourne, the NSW Hunter Region, and Brisbane.
CBRE executive director, industrial and logistics, Chris O’Brien, tipped widespread interest.
“This is a substantial portfolio of eastern seaboard product which has a diverse tenancy profile and offers significant rental upside given the infill nature of most of the assets. We expect to field considerable demand from both local and offshore buyers,” he said.
Colliers head of industrial capital markets, Gavin Bishop, noted the unique spread of properties and their potential.
“Land rich assets with value-add potential, including development and repositioning strategies, remain highly sought after and we expect the portfolio to attract wide-ranging interest,” he said.
The portfolio comprises 15 and 63 Britton St in Smithfield, 2 Simblist Rd, Port Botany, 11-21 Gardiner St, Rutherford, 270 Bay Rd, 1, 3, 5 & 7 Brixton Rd, 31-33 and 41-43 Wangara Rd and 2, 4 and 6 Brixton Rd, Cheltenham
Almost 70 per cent of the portfolio’s net passing income is weighted to Sydney, which will help drive future rental upside.
The collection of assets also benefits from a staggered lease expiry profile, giving buyers an opportunity to benefit from positive rental reversion and pursue the properties’ inherent value-add potential.
