AMP Capital, on behalf of Swiss RE, has sold a logistics facility in Eastern Creek for $130.1 million setting a new record low yield of 3.62%.
The warehouse is the distribution facility for Best & Less and comprises a 35,000sqm warehouse with associated office space and was originally developed for Best & Less by Australand in 2011.
The Lendlease Prime Property Industrial Fund acquired the asset with an 8 year lease term remaining with Best & Less. The reported passing yield of 3.6% and reflects a rental rate of c$136/sqm pa, which is consistent with the new assets in the area.
Swiss RE acquired the asset for $99.5M (4.9% yield) in March 2019 from Greenlite brands as part of a diversified mandate provided to AMP Capital. Swiss Re (via AMP Capital) also acquired Marketplace Warner for $78M in October 2017; 469 LaTrobe Street Melbourne VIC for $160M in November 2017; 32 Walker Street North Sydney from an Abacus and Heitman in late 2017 for $74.75m and a 50% interest in two buildings in Carrington Street for $250m.
AMP Capital have been gradually divesting the portfolio under the instructions of Swiss RE.
EG Funds Management are reported to be in due dilligence on the remaining office assets.
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