Lendlease has snared a 3.2 hectare industrial investment to expand the Smithfield Exchange business park it bought five years ago this week.
The latest asset, 15-21 Britton Street, Smithfield, is setting the group back $47.05 million.
The vendors, Arrow Capital Partners and Starwood Capital Group picked it up as part of their $760m play for 12 Altis Property Partners investments in late 2021; at the time the office/warehouse value was recapitalised to $28.9m.
Altis paid $19m in 2016.
Lendlease’s Australian Prime Property Fund Industrial will now hold it.
Short WALE a plus
The Smithfield property, with 12,979 square metres, was offered with a short term lease to Snackbrands, which produces chips CCs, Cheezels and Thins there.
The purchase price reflects a 3.3 per cent net passing yield.
Lendlease paid $44.8m for the Smithfield Exchange, on 5.5ha at 28-54 Percival Road.
In a show of how fast industrial values have moved in the hub, 25 kilometres west of Sydney, that seller, GM Property, paid Cromwell $19.2m in 2013 (story continues below).
Multi-level business park planned
An APPF Industrial spokesperson said the fund plans to redevelop both sites into a “best-in-class” multi-level logistics facility.
“The proposed development’s design draws on Lendlease’s understanding of industrial warehousing requirements gained through active customer engagement,” they added.
“The development plan includes multiple access ramps, high clearance warehousing, on-grade and recessed docks for all levels and B-Double approved access and maneuverability,” according to the representative.
“It will also incorporate technology to advance smart buildings for the industrial sector, target sustainability outcomes with solar, energy and water efficient equipment that support employee health and wellbeing with respite areas and amenity including onsite retail, fitness and childcare”.
APPF Industrial now holds 45 properties.
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