Industrial fund spends $47.5m in Melbourne
NGS Super has sold neighbouring Dandenong South investments after 10 years.
The industry fund – primarily for non-government and education and community organisations, though open to everyone – is banking $47.5 million for the 3.64 hectare amalgamation.
Dexus is the buyer, for the Industria REIT (DXI).
The blended initial yield is 5.4 per cent.
Settlement is scheduled this month.
Funded through debt, the trust’s gearing will increase 2.5pc, below its 30-40pc target range.
Dandenong South assets
The largest property, 15-31 Americain Way, spreading 2.38 hectares, is occupied by packing group LJM.
It previously traded in 2015 for $14.5m.
The neighbouring investment, 50 Jayco Drive (pictured, top), covers a 1.27ha corner block, leased to Cobs Popcorn.
It cost $8.35m 10 years ago.
Elite Property Group, which developed both buildings, was the vendor.
The blended weighted average lease expiry is 4.8 years.
“This transaction reflects successful redeployment of capital following the divestment of Brisbane Technology Park, reinforcing DXI’s evolution into a focused industrial REIT,” Dexus head of Listed Fuds, Jason Weate, said.
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