Stephen Day’s Propertylink is continuing to add assets before a potential float, paying $21.6 million for a 23,452sq m site in Sydney’s southwest suburb of Minto.
The property, at 50 Airds Road, is leased to three tenants — Fields Australia, Doka Formwork Australia and NSW Freightlines — with an overall weighted average lease expiry of 3½ years.
Peter McDonald, Propertylink’s head of property, said large infrastructure projects in Sydney’s south west would have a significant impact on the rental and capital growth of the property.
“The purchase reflects an acquisition yield of 9.5 per cent and we expect to see yields compress for assets like this in the short term,” Mr McDonald said.
The transaction was brokered by Gavin Bishop of Colliers International. The purchase brings the total value of Propertylink’s Australian Industrial Partnership, which was launched in March, to $360m. The fund, backed by Goldman Sachs, Grosvenor Group and Propertylink, has scope to expand to about $400m in assets.
PAIP’s portfolio is spread across the eastern seaboard, with 35 per cent in Sydney, 47 per cent in Melbourne, and 16 per cent in Brisbane.
Propertylink added the new Melbourne Markets development to its portfolio a fortnight ago, paying $77.4m for five warehouses in Epping.
The company purchased two other properties in Melbourne last month for $23.54m, at Taryn Drive in Epping and Ricketts Road in Mount Waverley.
The 10,500sq m Epping building is leased to US toolmaker StanleyBlack & Decker and showed an 8.75 per cent yield.