GPT has confirmed the $72.5m acquisition of a Laverton North warehouse leased to Spotlight.
The property, at 235-239 Boundary Road, was acquired from Richinda, a company associated with Mark Ruff, managing director of commercial and industrial builder Qanstruct. in 2018, Richinda paid $16.5 million for the vacant warehouse, previously occupied by Toyota, and then extended and refurbished the facility to provide 31,306sqm of high clearance warehouse space, offering 44,000 pallet racking capacity alongside 2052 square metres of corporate offices and staff amenities as well as 275 car spaces.
Spotlight recently signed up to a 5 year lease on the facility for its chain of fabric and craft outlets as well as retailers Anaconda, Mountain Designs and Harris Scarfe.
The GPT acquisition price reflects a tight yield of 3.8 per cent, particularly sharp given the short lease term.
Matthew Faddy, Head of Office & Logistics at GPT said: “GPT are pleased to secure this well-located logistics facility in Melbourne’s west, fully leased to a high-calibre tenant in Spotlight. We continue to grow a portfolio of modern, high quality logistics assets through judicious acquisitions and build-to-core developments. GPT continues to capitalise on robust demand from occupiers to drive our logistics growth strategy, with $170 million of developments on track to be completed in the second half of 2021.”
The off market deal was brokered by JLL’s Tony Iuliano, Executive Director, Head of Capital Markets Industrial & Logistics and Senior Director Adrian Rowse. Mr Iuliano said: “This is a stunning high bay facility in part which future proofs the ongoing demand for automation for generations to come. We are seeing a significant amount of transactions, off-market in particular, with the vendor profile evolving this year as super private family offices take advantage of current market conditions.”
The transaction is the latest in GPT’s growing industrial portfolio which grew 10% in value in FY21 to $3.4b and has more than doubled since 2017.
GPT is also continuing to take advantage of the strong demand for Logistics facilities, by progressing its $1.4bn pipeline of development opportunities. GPT are well advanced on three speculative developments, due for completion prior to the end of the 2021, including a 24,000 square metre facility at the Gateway Hub, a 16,300 square metre facility at Berrinba and a 17,000 square metre development at Wacol.
GPT and QuadReal announced a strategic partnership in February 2021, with the 50:50 joint venture targeting an initial investment of $800 million through the acquisition and development of Australian prime logistics assets.