Vineyard Property Trust

Multi-tenanted industrial property

172 Commercial Road, Vineyard, NSW

  • March 2021

    Date Acquired

  • $9.15 million

    Acquisition Price

  • 3.4 years

    WALE (at acquisition)

  • 16.5%

    Target IRR p.a.

The multi-tenanted industrial hardstand property is located approximately 50km northwest of the Sydney CBD and sits on a large 47,973 sqm parcel of land.

The property had a single lease to Pilequip at acquisition and EG identified the property as being under-rented and mispriced due to the marketing campaign being focused on future residential rezoning. During due diligence, EG entered into direct negotiations with the sub-lessees of Pilequip to lift them to head lease status. The process increased the income and improved the diversity of income.

The Trust has forecast average quarterly distributions of 8.25% p.a. and an equity IRR of 16.5% p.a.

"The Fund is looking to continue investing in multi-use industrial real estate, offering high income yield with strong capital-growth potential in important growth corridors"

Rodney Walt