JV spends $100m for Brisbane business park
The recently formed KM Property Funds and PGIM Real Estate joint venture has secured another major investment.
Following an off-market deal, the buyer is paying Stockland just over $102 million, according to sources, for the 9.6 hectare business park, 14 Dixon Street, Yatala (pictured, top).
With four freestanding warehouses containing 43,572 square metres, it was developed between 2019-2023.
Fully leased, the weighted average lease expiry is 4.7 years.
“We are particularly exited about the Yatala micro-location due to its proximity to both Brisbane and the Gold Coast, which will continue to capitalise on the diverse occupier pool and low vacancy rate,” KM Property Funds partner, Industrial Investments, Ryan Korda, said.
“The accommodation itself is best in class with ideal tenancy sizes and excellent truck loading,” he added.
“The transaction underscores the attractiveness of quality assets driven by robust population growth, increasingly limited availability of zoned land, strong demand from occupiers and strategic infrastructure investments by the state government,” according to the executive (story continues below).
Second deal
The Yatala deal comes nine months since the JV acquired the Central West Distribution Centre, in Melbourne’s Laverton North, for $92m from Dexus.
“The compelling risk return profile of the [Brisbane] estate makes it an excellent asset to be added to our portfolio,” PGIM head of Real Estate, Steve Bulloch, sad.
“We like the prospects for this sub-market and the high quality, multi-tenanted asset,” according to the executive. “The partnership with KM Property Funds on this acquisition aligns with our thesis of targeting high quality assets with rental reversion potential that will be attractive to core capital investors in the future”.
JLL’s Ben Hegerty and Jack Kelliher with Colliers’ Nick Evans and Gavin Bishop were the agents.
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