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March 2021
Date Acquired
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$9.15 million
Acquisition Price
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3.4 years
WALE (at acquisition)
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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"