EG has purchased a west Sydney industrial investment for a trust it launched last week and closed oversubscribed in 72 hours.
The 4.8 hectare property, 172 Commercial Road, Vineyard, is largely undeveloped.
It contains some structures and is fully tenanted to nine businesses; the Weighted Average Lease Expiry is 3.4 years.
EG is anticipating an eight per cent annual return “with the potential for capital growth” through leasing and repositioning.
Central Element, the vendor, paid $4 million in mid-2018; it sold four years prior to that for $3.625m
It was marketed this time around by Savills’ Neil Cooke.
Vineyard is 50 kilometres from Sydney.
It is about eight kilometres north west of Rouse Hill.
Last March Stockland paid $415m for control of a housing estate in this pocket’s Box Hill (story continues below).
EG Vineyard Property Trust
The Commercial Rd property will be held by the EG Vineyard Property Trust which closed oversubscribed within three days.
“The area is currently benefiting from an infrastructure boom as a result of the recently established Northwest Metro railway line and significant residential expansion through lot subdivision development, particularly in Kellyville and Box Hill,” EG head of private wealth, Rodney Walt, said.
“The fund is looking to continue investing in multi-use industrial real estate, offering high income yield with strong capital growth potential in important growth corridors”.
The west Sydney property was acquired on a seven per cent yield.
EG is 21 years old, it manages $3.2 billion of real estate on behalf of private clients and super funds.
Its development pipeline is worth about $4.3b.