Leda, Pittwater trade $95m industrial portfolio

The Kings Business Park (also pictured top) sold for $66.75 million as a development site.


Pittwater Industrial has quietly picked up three Sydney assets with value-add upside from Bob Ell’s Leda Holdings.

The Eastern Creek investment should be returning over $720,000 per annum.

In the biggest deal, the relatively new investment house led by former Urbanest directors Ted Hawkins and Dave Munro, is outlaying $66.75 million for Mascot’s Kings Business Park.

The result for 247 King Street, with nine tenancies, reflects a 2.7 per cent yield, made even more impressive for the seller given the short 1.2 year Weighted Average Lease Expiry.

Mr Ell acquired the property from Deloitte on behalf of an administrator in 2018 for $44.5m.

Near Sydney Airport, Pittwater has earmarked a multi-level logistics estate; the 1.34 hectare block can accommodate 22 metre structures, almost quadrupling the lettable area to 41,000 sqm.

The deal comes a year since LOGOS, backed by the Abu Dhabi Investment Authority, paid Qantas $802m – c$200m over expectation – for a collection of Mascot investments and land parcels, all up covering 13.8ha.

Another Eastern Creek deal

At Eastern Creek, 38 kilometres west of Sydney, Pittwater is paying Leda $15.25m for a 3993 sqm facility effectively on a month-to-month tenancy.

On 5771 sqm at 6 Shale Place, the deal reflects a 3.5pc passing yield or 4.6pc capitalisation rate; Brighton Best International is the tenant.

The market yield is 4.77pc – high enough for Pittwater to be considering this a passive investment, possibly after a refurbishment.

The asset includes an ESFR [Early Suppression Fast Response] sprinkler system, two container height roller doors and large awning (story continues below).

Action Aluminium occupies 87-91 Victoria Street, Smithfield.

There are also 38 car parks.

The property is opposite a parcel Charter Hall acquired in mid-2021, and, last month, pre-committed Woolworths to a multi-level facility.

Pittwater acquired 373 Horsley Road, Milperra, last year.

Pittwater boosts portfolio

Meanwhile, at Smithfield – 25km west of town, Pittwater is paying Leda $13m for an industrial duplex on 5994 sqm at 87-91 Victoria St.

With 3700 sqm, this asset has the longest WALE – 3.6 years.

Its sale reflects the highest passing yield (3.75pc) and market return (4.98pc) too.

Colliers’ Gavin Bishop, Sean Thomson, Trent Gallagher and Paul McGlynn brokered the off-market deals, acting for Pittwater.

The addresses are in three of Sydney’s most tightly held infill industrial precincts, they said.

“The portfolio provides a net passing income of $2,896,618 ($159/sqm) per annum, which is below the assessed net market rent of $4,535,998 ($250/sqm), benefitting from a secure 1.4 year WALE (by income) which allows value-add opportunities to be applied in the short term,” they added.

Colliers also negotiated the Qantas deal.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.