Colonial – realestatesource https://www.realestatesource.com.au Commercial and residential property news Thu, 22 Oct 2020 23:21:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.realestatesource.com.au/wp-content/uploads/2024/03/rsfav-100x100.png Colonial – realestatesource https://www.realestatesource.com.au 32 32 DWPF Pays CDPI $231 Million For Industrial Portfolio https://www.realestatesource.com.au/dwpf-pays-cdpi-231-million-for-industrial-portfolio/ Mon, 25 Oct 2010 04:16:37 +0000 http://realestatesource.com.au/wordpress/dwpf-pays-cdpi-231-million-for-industrial-portfolio.html DEXUS Wholesale Property Fund has paid Colonial Direct Property Investment Fund $231 million for a portfolio of 13 industrial portfolios on Australia’s east coast.

The purchase includes eight properties in Sydney, three in Melbourne and two in Brisbane. Some are income producing investments, while others are development sites.

After the acquisition, DWPF’s portfolio allocation will be 57 per cent retail, 32 per cent office and 11 per cent industrial – though the plan is to boost the industrial allocation.

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According to a statement issued by Dexus (copied below), tenants in the acquired portfolio includes Bonds, DHL, Fairfax Media and Mercedes Benz.

Dexus announcement:

17 October 2010

DEXUS Wholesale Property Fund acquires industrial portfolio

DEXUS Wholesale Property Fund (DWPF) today announced the acquisition of an industrial portfolio
comprising 13 properties for $231 million plus acquisition costs, with an initial yield of
approximately 9%. The acquisition will diversify DWPF’s portfolio and is expected to increase the
Fund’s income yield.

The properties are located within key industrial markets across Australia, with eight properties in
Sydney, three properties in Melbourne and two properties in Brisbane. Twelve of the properties are
stabilised, income-producing properties and one is a 6.7ha development site in Richlands,
Queensland, a key industrial market.

The acquisition achieves DWPF’s strategic objective to construct a diversified portfolio by acquiring
quality industrial properties at levels below long term fair value, thereby providing an opportunity
to enhance returns.

Graham Pearson, DWPF Fund Manager said: “Our objective is to increase DWPF’s portfolio allocation to industrial property to between 10% and 20%, by constructing a diversified industrial portfolio of properties primarily located near key infrastructure and employment hubs on the Eastern seaboard.

The acquisition meets this aim, increasing DWPF’s allocation to industrial property to 11%, from 4%
prior to the acquisition.

“We are securing both a portfolio of good quality, stabilised industrial properties and a pipeline of
industrial development land at a level that is below our view of long term investment value. By
making the acquisition at a low-point of the valuation cycle and holding the properties for the longterm we are able to enhance returns to investors.”

The acquisition will be initially funded with debt. In addition, DWPF is seeking to raise $300 million
of new equity, with the potential for up to $500 million, from new and existing investors. The offer
is scheduled to commence later this month. The proceeds of the offer will be allocated to the
development pipeline and to enhance the portfolio quality as well as to maintain gearing within the
fund long term target range of 10% to 20%.

Tenants in the acquired portfolio include Bonds, Mercedes-Benz Australia, DHL and Fairfax Media.
The vendor of the properties is Colonial’s Direct Property Investment Fund.

Following the acquisition, the DWPF portfolio allocation will be approximately 11% industrial, 57%
retail and 32% office.

]]> North Sydney Office Sell-Off in First Quarter https://www.realestatesource.com.au/north-sydney-office-sell-off-in-first-quarter/ Sun, 01 May 2011 12:00:53 +0000 http://realestatesource.com.au/wordpress/north-sydney-office-sell-off-in-first-quarter.html NORTH Sydney’s office investment market has recorded several major sales in the first quarter of this year.

In the most recent deal, Colonial First State Global has offloaded 50 Berry Street for about $30 million to local investment company Kingsmede. The 14-level office was marketed by Chesterton International.

Elsewhere in North Sydney, 90 and 100 Mount Street sold to Laing O’Rourke for about $50 million, according to the AFR. The site is set to be redeveloped into an A-grade office tower. It was sold by Winten Property Group with plans for a $157 million tower.
]]> This year, Altis Property Partners settled on the $38.25 purchase of 2 Elizabeth Plaza.

Meanwhile Perth-based joint venturers Property Bank Australia and Security Capital Corporation paid $22.25 million for 75 Miller Street. The 12level, 4929 square metre building with 39 car park bays is opposite North Sydney’s landmark 101 Miller Street.

The consortium bought another office at 8 West Street from Becton in late 2009.

]]> Dexus Paying More Than $200m For Industrial Property Portfolio https://www.realestatesource.com.au/dexus-paying-more-than-200m-for-industrial-property-portfolio/ Sun, 17 Oct 2010 04:34:10 +0000 http://realestatesource.com.au/wordpress/dexus-paying-more-than-200m-for-industrial-property-portfolio.html DEXUS Wholesale Property Fund is reportedly paying more than $200 million for a portfolio of industrial assets – the bulk of Colonial First State Global Asset Management’s portfolio, which was listed in June.

The investments include the Myer distribution complex in Melbourne’s Altona and the DHL facility in Eastern Creek, Sydney, according to the report.

All up 16 warehouses and two development sites were offered by CFS.

The disposal, expected to be announced in weeks, would reflect a yield of about 8.5 per cent according to the AFR.

]]> Colonial Sells Richmond Office For $18.35 Million https://www.realestatesource.com.au/colonial-sells-richmond-office-for-1835-million/ Sun, 31 Oct 2010 20:04:21 +0000 http://realestatesource.com.au/wordpress/colonial-sells-richmond-office-for-1835-million.html INTERESTS associated with Perth based Property Bank Australia and Security Capital Corporation have paid $18.35 million for a 5122 square metre office building in Richmond.

Building 8 of 658 Church Street was offloaded by Colonial First State Global Asset Management. The asset is fully leased to DDB and Optus (trading as Uecomm).

Based on the annual net rent of $1.637 million, the asset sold on a yield of 8.9 per cent.
]]> Colliers International directors Peter Bremner, Jeremy Gruzewski and Nick Rathgeber marketed the property, which sold on a rate per square metre of $3,583.

“Richmond Corporate Park is known as one of Melbourne’s best office parks, offering a combination of prime city fringe location, high quality improvements, blue chip tenancy and growth potential,” Mr Bremner said.

“The location, design features, tenancy profile and leasing performance are first-class, creating a proven and sound long term commercial investment with potential for significant medium term rental growth.”

PBA/SCC recently acquired a North Sydney office building from Becton.

 

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