Dexus will sell Lake Business Park South, near Sydney Airport, and five premium quality industrial assets in Melbourne’s Truganina, to Dexus Australia Logistics Trust – in which it controls 51 per cent.
The $269.4 million deal reflects a 5.3pc passing yield.
The portfolio of newly constructed properties is 91pc occupied with a weighted average lease expiry (WALE) of 7.4 years.
Singapore sovereign wealth fund GIC owns the balance of DALT, which was seeded in 2018 with $1.4b of Dexus investments and development sites.
Last year the offshore group exercised an option to increase its stake in the unlisted trust’s development pipeline from 25pc, also to 49pc.
DALT’s July 2020 spending spree tallies $442.9m
The six purchases announced today brings to $442.9m the fund’s outlay this month: it also spent $100m on an asset in Sydney’s Greenacre and $73.5m, on a funds-through basis for a Mickleham, Melbourne, distribution centre pre-committed to Ford.
In a partnership with Dexus and Dexus Wholesale Property Fund, DALT is co-developing the 127 hectare Horizon 23 business park in Ravenhall, two suburbs north of Truganina – nearly two years ago pre-committing Scalzo Foods to a 35,300 sqm warehouse there.
Last May, the fund paid Heathley Asset Management $26.5m for a 9.2ha industrial site in Brisbane’s Richlands, with intentions to construct 55,000 sqm of logistics stock on it.
A month earlier, in a deal outside of the industrial agreement, Dexus and GIC acquired a half-share of the Rialto Melbourne office and retail complex from Kuwait’s St Martin’s Property for $644m (story continues below).
DALT’s Truganina properties
47-53 Foundation Drive – a 5.6ha parcel with two office/warehouse facilities (pictured, top) containing a total of 33,637 sqm of area. Leased to Secon Freight Logistics, this asset has a WALE by income of six years.
380 Dohertys Rd – a 9,180 sqm property tenanted to Primary Flooring Ltd, trading as Dunlop, which has 6.3 years left to run on a lease. This site spreads 1.49ha and contains a super-canopy. The office is considered premium grade.
7 Custom Place (formerly known as 12A Clearwater Pl and 12A Felstead Dve) – a warehouse purpose-built for Coles as a banana and avocado ripening facility. On 2.1ha, adjacent to other DALT properties, it contains a 7280 sqm temperature controlled complex. The supermarket is committed until 2035.
9 Custom Pl (formerly 12B and 12C Felstead Dve) – a substantially bigger (7.8ha) block than its neighbour, containing two new office/warehouses with a total of 26,610 sqm of lettable area. The factories are also designed with a particularly high (14.6m) clearance. AS Colour and eStore Logistics will be the occupiers once construction is complete over the next three months. The WALE is 10-years, measured by income, DALT said.
58 Foundation Rd – containing 8350 sqm of area on a 1.37ha site with a 35m wide hardstand area, it is rented to Speciality Packaging Group, which has seven years left to run on its agreement. This property is also adjacent to other DALT assets.
Botany’s Lakes Business Park South
The new Lakes Business Park South, at 11 Lord Street, Botany, includes 30 units on a 2.98ha block. All up there’s 18,786 sqm of area across three buildings. Tenants include Fedex, Glassons, Medlab and Sunbeam Corporation. The WALE is 3.5 years and again, this property is adjacent to DALT investments.