Pelligra Group has outlaid about $70 million on two regional distribution centres following an off-market deal.
The most valuable facility, in Goulburn, New South Wales (pictured, right), is leased to Coles until 2022.
At 134 Lillkar Road, the 16.25 hectare site includes a modern complex with a 42,500 sqm warehouse with 60 access points and 3400 sqm office.
The vendor, Anrose Nominees, paid $72.25 million, in 2012.
Pelligra Group also picked up a 23.25 hectare industrial property in Queensland’s Warwick, about 130 kilometres south west of Brisbane (pictured, right).
Built at 476 East Street for Woolworths’ troubled Big W brand – it last sold in 1996 for $25 million with a leaseback.
The current rental agreement expires in 2023.
Big W already said it intends to vacate the facility: a 65,300 square metre warehouse accessed via 103 roller shutter doors, attached to a 430 sqm office.
Imminent vacancy + subsequent risk = high yield
Genox, the Warwick property owner, and Anrose Nominees, are jointly directed by Melbourne based Andrew White and Roseanne Amarant, the daughter of late property developer Ezriel Rabinowicz (Rabinov).
The agents said the off-market expressions of interest campaign generated eight offers from a mix of local and offshore institutions.
Based on the total annual rental return of the industrial assets ($16.05 million), and assumed sale price ($70 million), the blended yield for the transaction is at least 23 per cent, which is extraordinarily high.
The cap rate factors in the risk the landlord will face tenanting large, non-metropolitan industrial facilities, and likelihood of it pulling in rents like it is achieving from Coles and Big W, again.
Pelligra Group has a track record of re-positioning
East Keilor based Pelligra Group has a track record of re-positioning sites.
Last May it snapped up from Ford Australia vacant factories in Campbellfield and Geelong, which are being retrofitted to become a business park which can be tenanted by multiple users.
In 2017 the investor and developer bought General Motors Holden’s Elizabeth plant which it also replaced as an industrial park.
Seven months ago Pelligra Group spent an undisclosed sum believed to be more than $21 million on a 20.8 hectare parcel in Melbourne’s west Ravenhall, part of which is expected to be sold down after a subdivision.
Directed by Ross Pelligra, the company also owns Braybrook’s former Huntsman factory, picking up the 39 hectare holding, not far from Ravenhall, in September, 2018, again following an off-market deal.
Its development pipeline includes office and residential product, too.
A month before buying the Huntsman site, Pelligra Group co-purchased a collection of Richmond properties, including the ex-SEN Radio office, with the intention of creating a landmark mixed-use complex.