- March 2021
- $9.1 million
- 8.25% p.a.
The multi-tenanted industrial hardstand property is located approximately 50km north west of the Sydney CBD and sits on a large 47,973 sqm parcel of land.
Leased to 9 tenants with a WALE of 3.4 years at acquisition, the property was secured on an attractive 7% initial yield, with potential for rental growth through additional leasing and repositioning.
The property had a single lease to Pilequip at acquisition and EG identified the property as being under-rented and mis-priced due to the marketing campaign being focused on future residential rezoning. During DD EG entered into direct negotiations with the sub-lessees of Pilequip to lift the sub-lessees to head lease status, and during 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 IRR of 16% 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"