The Iconic warehouse sells for $46.6m
Industrial real estate and funds specialist Propertylink Group has snapped up an industrial complex in the western Sydney suburb of Yennora in a $46.6 million play.
The property was sold by private Sydney-based developer Lamiprint just after it struck a major leasing deal with online fashion retailer The Iconic.
The sale of the property at 205-231 Fairfield Rd showed an initial yield of 7.39% and was brokered by Elijah Shakir of CBRE.
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The A-grade industrial property was bought by the unlisted Propertylink Australian Industrial Partnership, and indicates the group’s ability to source acquisitions in Sydney’s hot industrial market.
The Yennora property spans a total lettable area of 31,086sqm, set on a 5.5ha site and offers high clearances of up to 13.2m, along with a corporate office on two levels.
The property features a quality income stream with a weighted average lease expiry of 6.6 years, including the new seven-year lease with The Iconic.
Propertylink chief executive Stuart Dawes says PAIP II now comprises 11 industrial properties valued at $220 million with a forecast portfolio WALE of 5.1 years after the Yennora deal was done, reflecting the solid demand from leading local and global investors for such properties.
Propertylink manages more than $1 billion of assets with an 7.4% average coinvestment that generates revenue and aligns investor and manager interests.
The company’s head of property, Peter McDonald, notes the changing nature of supply chains, and says that a feature of the current cycle is the fundamental change in the way they are designed and implemented, largely due to structural changes brought about by e-commerce.
“This demand, coupled with limited new supply, has resulted in consistent positive net absorption over a two-year period,” he says.
This article originally appeared on www.theaustralian.com.au/property.