Barings, Rest swoop on $780m industrial portfolio
Goodman Group has sold a portfolio of 12 east coast industrial investments to Barings and Rest Super.
The $780 million deal is speculated to reflect a bullish five per cent passing yield and slightly higher capitalisation rate.
It comes six months since the same buyers paid Charter Hall $94m – a 4.7pc return – for two fully leased warehouses on 7.9 hectares in Melbourne’s west Truganina.
All properties will be held by a fund announced last year, with an initial $1 billion mandate.
The transaction follows us reporting in March Goodman sold Aware Super the Eumemmering Business Park in Melbourne’s south east for a speculated $100m-plus.
Barings, Rest approach $1b
Barings – formerly known here as Altis Property Partners – and Rest hold United States product and are looking to expand in Europe.
Its latest portfolio, properties in Sydney and Melbourne, contain 340,000 square metres – fully leased – on land of 70ha (story continues below).
Metcash’s landmark Truganina distribution centre, spreading 115,000 sqm (artist’s impression, top), forms part of the deal, as do facilities leased to Iron Mountain and Super Retail Group.
Amazon Australia also becomes a Barings and Rest tenant client.
“After investing successfully in the US industrial property sector and committing to a venture targeting the UK and Europe, we’re pleased to now increase our presence in the Australian market where there is continued strong demand for industrial property,” REST chief executive officer, Andrew Lil, said.
“We believe there’s value in purchasing well-located industrial assets and we expects rents to increase materially over time,” according to the executive.
“It aligns with our investment strategy of targeting to buy existing leased buildings with significant underlying land value and attractive pricing,” executive director, Shaun Hannah, added.
Goodman will tip proceeds into its data centre strategy – explained in some detail in its February reporting – expected to be a key area for the group and presently representing 37pc of its development pipeline.
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