Mitsubishi’s MEC grows industrial portfolio
Goodman has divested another major logistics asset, this time in Sydney.
Mitsubishi Estate’s investment management arm MEC Global Partners Asia with BKC are paying $127.5 million for the Cumberland Industrial Estate at 3 Herbert Place, Smithfield.
The result reflects a low 3.94 per cent initial yield.
Colliers’ Trent Gallagher was the agent.
The deal comes four months since realestatesource.com.au reported Japan based Mitsubishi on behalf of MEC, with Charter Hall, would develop a 41,000 square metre logistics investment in Melbourne.
Cumberland Industrial Estate
With 28,746 sqm in three buildings, the Smithfield property is fully leased, to Fluidra Group Australia, Kingpan Water & Energy and Monde Nissin Australia.
The weighted average lease expiry is about four years.
The improvements cover 39pc of the 7.39 hectare block, which has full drive through access.
There is also a truck wash, mechanic workshop and axle weigh (continues below).
There are 122 car parks too, and 38 for trucks.
“The result highlights the strong demand we’re seeing for high quality industrial assets in core Western Sydney locations particularly those offering scale, secure income and significant rental reversion and investors are increasingly focused on opportunities where they can capture rental growth over the medium term,” Mr Gallagher said.
“Opportunities of this scale and quality are rarely bought to market and there continues to be strong interest from both domestic and offshore groups looking to deploy capital into well-located logistics and industrial assets,” he added.
Earlier this year realestatesource.com.au reported Goodman sold a Brisbane warehouse.
In late 2024 the property giant divested the Banyo South Industrial Estate, for $28m.
It recently bought the landmark Gibson Island from Incitec Pivot.
Smithfield is about 31 kilometres west of Sydney’s CBD.
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