Properties & Pathways banks $73.5m from industrial portfolio
Properties & Pathways has sold six land rich industrial investments acquired in the two years before the national lockdown.
RF Corval purchased four of them, in Perth and Brisbane; its $45.7 million outlay reflects a 5.98 per cent yield.
Gateway Capital snapped up another late last year; on two hectares in Melbourne’s Laverton North, on Boundary Road, it fetched $13.35m – a 5.7pc return.
The final property, a 1.2ha holding at 50 Arc Place, Larapinta (pictured, top), south of Brisbane, collected c$14.3m.
This result reflects a major capital gain for Perth based P&P, which, on behalf of 38 investors, outlaid $7.86m in 2019.
CBRE’s Jack Pershouse managed the sell down.
RF Corval boosts industrial portfolio
RF Corval’s assets will be held by two funds.
Three of the properties are in Brisbane, at Acacia Ridge, and two in Crestmead.
The other is at Welshpool, south east of Perth.
All up they cover 6.9ha and contain 28,000 sqm (story continues below).
The passing rent is considered below market.
“With its purchase, RF Corval continues to build a diversified portfolio of urban industrial assets across Australia’s capital cities benefitting from low site coverage, scarce supply and strong tenant demand,” company chief executive officer, Rob Rayner, said.
“Underpinned by high land values, we consider them as key defensive opportunities,” he added.
P&P banks $73.5m from sell down
The P&P portfolio featured 40,000 sqm across 10.1ha, with a four year Weighted Average Lease Expiry.
Managing director Cal Doggett said it entered the industrial sector at the right time – a decision now delivering a “fantastic result” for its investors; since COVID, the property type has become highly sought after driving yields to record lows.
“The fundamentals that attracted us to acquire these assets over the past four years are exactly the same characteristics that will allow the successful buyers to enjoy continued growth for years to come, despite capitalisation rates,” according to the executive.
Mr Pershouse added “these low-site coverage landholdings generated strong interest, given their locations and accessibility, combined with pending lease expiries and low vacancy rates that are allowing buyers to factor in plausible future rental growth”.
Subscribe to our newsletter at the bottom of this page.
