QIC sheds Adelaide investment
QIC is selling a major north Adelaide industrial investment after nearly a decade.
The 4.57 hectare asset, 281-301 Grand Junction Road, Ottoway (pictured, top), is in due diligence with Westbridge Funds Management for $41 million.
With 26,683 square metres in three buildings leased to multiple tenants, it returns $2.37m per annum.
That rent ($89 per sqm/pa) is about 24 per cent below market, the buyer said.
The deal comes a week since we reported Lendlease sold an Australia Post backed investment in nearby Regency Park for $22.52m.
5.8 per cent yield
QIC acquired the Ottoway property in 2016.
Recently repositioned, Bluescope Steel subsidiary Orrcon Steel is an occupier, with SA Group Enterprises, Shape Australia and Master Butchers Co-operative Limited.
The weighted average lease expiry is 4.1 years.
The improvements can be further revamped, according to marketing agents, CBRE’s Paul McKay with Leedwell’s Andrew Zammit and Steve Smith.
Ottoway is about 12 kilometres from the CBD.
It is about eight kilometres south of the Osborne Naval Shipyard, set to benefit from the $368 billion AUKUS submarine program.
Perth based Westbridge will hold 281-301 Grand Junction Rd in an open-ended fund this month calling on investors.
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