EG has capitalised on market momentum to sell an industrial site at 230 Captain Cook Drive, Kurnell for $60m, more than doubling investor equity in less than three years.
Purchased in 2019 for $36.0 million, the site was the first asset in EGās Australian Core Enhanced (ACE) Fund, an open-ended, diversified, long-hold fund. Since its launch, ACE has now grown the core-plus portfolio to $1.2 billion.
āA thorough understanding of site location was crucial in identifying this acquisition. Our demographic analysis combined with the increasing demand for in-fill logistics qualified the Sutherland Shire as an area with strong tenant demand and increasing market rental growth,ā stated Chris Pak, Joint Managing Director and Chief Investment Officer.
āAt purchase, our strategy was to lease and hold the asset after the tenant and previous owner, Dicker Data, moved into their new purpose-built facility at a neighbouring property. However, an unsolicited approach from an owner-occupier during the leasing campaign created this opportunity for our investors to divest, realising strong returns for our investors.ā stated Sean Fleming, EGās Head of Capital Transactions.
Located approximately 30 mins drive from Sydney Airport and Port Botany, the two-level commercial building and industrial warehouse was built over three stages between 2010 and 2013 consists of 15,955sqm of gross lettable area.
The asset was acquired on a two-year leaseback to Dicker Data (ASX: DDR), a leading IT hardware, software cloud and loT solutions distributor.
The deal was brokered off-market by Trent Gallagher and Edward McFarland of Colliers International.
Founded in 2000, EG has $5.1 billion under management on behalf of super funds and private wealth clients to generate outstanding returns with lasting social impact. With $3.9 billion in development pipeline and 16.7% per annum in realised IRR for institutional funds, EG is committed to finding a better path to better returns.
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