Corval, Dexus trading technology park investments, land
Dexus Industria REIT – which replaced the APN Industria REIT that merged with Dexus in 2021 – is selling the bulk of a Brisbane industrial estate.
Corval is the buyer – with plans to sell it down.
The $115.2 million offered for 11 of 13 buildings within the Brisbane Technology Park, or BTPnext, at Eight Mile Plains, reflects a 7.7per cent net passing yield.
Fully let at market rates, the return rises to over 10pc.
The deal, with a net price of $110.7m, comes 13 months since we reported Dexus, on behalf of the Regional Office Fund, sold Corval two Newcastle offices also acquired following its APN takeover.
Those neighbouring assets on Honeysuckle Drive traded for c$50m.
Seed asset
The seven properties will seed an unlisted fund – the Corval BTP Trust – now calling on investors for c$73m.
A starting annual distribution yield of seven per cent, paid quarterly, is being promoted.
This should rise to nine per cent over the hold period.
CBRE’s Jack Morrison and Peter Chapple with MP Commercial’s Peter Court were the agents; the brokers are also marketing the estate’s unsold property for Dexus. No property has settled.
Developed in 1987, predominantly with two and three level office/warehouses, Brisbane Technology Park accommodates over 200 businesses –amongst them, Bayer, Johnson & Johnson, Toshiba, Woolworths and the state government.
Some tenancies are fit out with laboratories.
There is also a café and childcare centre.
Vacancy, according to The Australian which is reporting the deal, is 2.8pc.
Development upside
Corval is one of several interests controlled by Multiplex founder Andrew Roberts.
Another is Roberts Co building, which was recently saved from collapse.
The property it just bought has an undeveloped tract.
The asset manager is expected to improve and let each asset before offering them for sale.
The deal comes a month since we reported Corval paid $103.5m for a Girraween, Sydney, poultry plant -a stake of which will seed another trust.
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