EG has purchased the priciest property yet for its Private Wealth division – which was launched last September.
The fully let bulky goods centre at 1618 Canterbury Road, Punchbowl, is costing $28.15 million – a passing yield of 4.5 per cent yield.
On 2.23 hectares, occupants include Officeworks, Petbarn and Caltex Woolworths.
The off-market deal was brokered by Colliers’ Trent Gallagher.
EG has now acquired eight investments for Private Wealth, which targets high income returning product with long leases (minimum 15 years), and aims to return investors an 8.5pc annual return.
1618 Canterbury Road, Punchbowl
The Canterbury Rd asset will be held in the EG Punchbowl Property Trust, available for wholesale investors (story continues below).
“The large format retail complex provides a substantial landholding in South West Sydney, with a strong tenant mix that provides a defensive and growing income profile” EG senior manager, Capital Transactions, Pishoy Gobran said.
The property is near the M5 South-West Motorway, close to established industrial precincts at Milperra, Padstow and Revesby, the buyer added.
Elsewhere in Sydney’s west, in August, the 15-year old Homebase Campbelltown homemaker centre traded for $48.3m, again reflecting a sub five pc yield.
Three months ago IOOF paid $68m for Minchinbury’s newly completed, part vacant Great Western Centre, which occupies a 3.2ha block.
That deal was struck at a 5.7pc passing return.
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