GPT Group spends $212 million on five Sydney industrial investments

GPT Group has spent $212 million on five Sydney industrial investments.

On Tuesday, Colliers and JLL confirmed GPT outlaid $105 million to secure a portfolio of three warehouses, marketed as the ‘Sydney Centric Portfolio’.

Offered by AMP, the assets are:

  • 104 Vanessa Street, Kingsgrove – an 11.2 hectare site leased to Shriro Australia for 5.3 years and returning annual rent of $1.23 million (which the agents said is about $130,000 below the market rate);
  • 30-32 Bessemer Street, Blacktown – a 4.5 hectare block containing a 20,149 square metre facility rented to Snackbrands, which pays yearly rent of $2.3 million. The weighted-average-lease-expiry for this property, is 6.8 years; and
  • 64 Biloela Street, Villawood (pictured, top). This 3.8 hectare parcel contains a 23,304 sqm warehouse occupied by VIP Plastic Packaging Pty Ltd, which pays rent of $2.3 million per annum.
The Kingsgrove asset is leased to Shriro

Colliers International’s Sean Thomson and Gavin Bishop with JLL’s Adrian Rowse and Tony Iuliano marketed the sites via an expressions of interest campaign which closed on March 29.

The agents said the blended yield for the portfolio was 5.57 per cent.

Meanwhile in Erskine Park, GPT Group is buying two 10-year old warehouses from a private investor for a reported $107 million.

First reported by the AFR in this item, the Erskine Park warehouses measure 25,400 sqm and 12,300 sqm and neighbour GPT’s Connect#ErskinePark logistics centre.

The Blacktown complex, occupied by Snackbrands, includes four buildings.

The acquisitions give GPT control of 88,200 sqm of industrial space in Sydney’s west and south-west.

Earlier this week we reported that the property group planned to build Australia’s tallest timber tower at Melbourne Central.

GPT Wholesale Shopping Fund also listed Norton Plaza, in Sydney’s Leichhardt, a retail asset speculated to be worth about $150 million.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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