Bob Ell sells Ingleburn industrial investment for $38.2m

Bob Ell paid $24.75 million for the 4.1 hectare industrial investment in August, 2017 – a month before what was considered the last cycle’s peak. He just sold it for $38.2m.

EG Australian Core Enhanced (ACE) Fund, has paid $38.2 million for an Ingleburn industrial investment with three structures.

The vendor, Bob Ell’s Leda Holdings, outlaid $24.75m for 5 Williamson Road in 2017.

Based on the multi-let asset’s net passing income ($2,073,454) – the pair’s deal is being sealed at a 5.4 per cent yield.

The weighted average lease expiry, to packaging companies Austcor and SPS, is 3.8 years.

The site spreads 4.1 hectares and includes 18,514 sqm of lettable area.

Ingleburn is about a 50 kilometre drive south west of Sydney.

ACE has $800m to spend: EG

CBRE’s Elijah Shakir and Jason Edge with Colliers International’s Gavin Bishop and Sean Thompson represented Leda Holdings (story continues below).

The asset, returning net annual rent of nearly $2.1 million from two packaging companies, sold on a 5.4 per cent passing yield.

“The acquisition provides the opportunity for EG to actively value-add through reconfiguration and expansion works via the employment of targeted leasing strategies to improve contracted lease tenure,” EG fund manager, Daniel Farley said.

“We are also strong believers for industrial outperformance in the improving precinct”.

The asset is the third for the open ended EG ACE fund – which was launched last June and is anticipated to invest more than $800m.

The trust’s strategy is to re-position assets to core.

Nine months ago it spent $79.1m on a 12-level A-grade office at 2 Mill Street in the Perth CBD.

It was seeded when EG paid Dicker Data $36m for a 16,000 sqm, two storey distribution centre at 230 Captain Cook Drive, Kurnell, in Sydney’s south, which is set to be vacated next year.

The real estate investment manager and developer is 20 this year.

The 4.1 hectare site contains three buildings with 18,514 square metres of lettable area.
The site (marked) is about 50 kilometres south west of Sydney.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco