EG Disposes Belrose Industrial Site With Investor Returns In Excess of 27% P.A. IRR

2 August 2022

EG has sold an industrial site at 22 Narabang Way, Belrose for $26 million, realising returns for our Private Wealth investors in excess of 27% p.a. over a 2.5 year hold period.

Acquired in January 2020 for $18.09 million, the modern, multi-let industrial facility is located in the tightly held and land constrained Sydney Northern Beaches industrial market. It marks the first divestment of an EG Private Wealth syndicate, which has assembled a portfolio of nearly $200 million since launching in 2020.

“Securing this strong return for our investors is an example of what’s possible when data-driven investing strategies meets comprehensive market risk assessment. The high demand for industrial assets and the ability of EG’s team to execute our asset strategy by enhancing rents and improving the average lease expiry encouraged us to bring the property to market earlier than expected, exchanging in May 2022,” said EG’s Head of Private Wealth, Rodney Walt.

The property sits on a substantial 15,800sqm landholding and is located 23.5km north of the Sydney CBD. The anchor tenant, Fantastic Furniture, signed a lease in March 2020 and moved in 1 day after the property became vacant, highlighting EG’s leasing insights and deep understanding of the market.

The property generates a fully leased net passing income of $1,124,771 ($235/m²) p.a. across a total of seven tenants with agents estimating an net market rental of $1,239,952 ($259/m²) p.a..

The transaction therefore reflects a passing yield of 4.3% and an estimated market yield of 4.9%.

The deal was brokered on-market by Gavin Bishop and Sean Thomson from Colliers International and Vincent West and Oliver Rosati from Upstate Commercial.