WA syndicator finalises sale of $78.8m I&L portfolio

Perth-based property syndicator Properties & Pathways has concluded its divestment of a tri-state industrial and logistics portfolio for $78.8m.

With six assets across Melbourne, Brisbane and Perth, the portfolio comprised 120,000sqm of industrial land in infill locations with a combined GLA of 40,000sqm and average WALE of four years.

RF Corval, on behalf of two separate funds, purchased the final four properties for a total of $45.7m.

With three landholdings in Brisbane – two in Crestmead and another in Acacia Ridge – accompanied by one in Welshpool in Perth, the acquisitions have a combined total site area of 69,000sqm and GLA of 28,000sqm.

The sale price reflects an initial yield of 5.98%, with the passing rents considered below-market.

The other properties in the portfolio, one in Laverton in Melbourne and Larapinta in Brisbane, were purchased by two separate parties in 2021.

CBRE’s Jack Pershouse managed the sale campaigns on behalf of Properties & Pathways.

β€œThe Properties & Pathways portfolio featured a quality spread of incoming producing assets across core logistics locations,” Mr Pershouse said.

β€œThese low-site-coverage landholdings generated strong interest, given their locations and accessibility, combined with pending lease expires and low vacancy rates that are allowing buyers to factor in plausible future rental growth.

β€œIncluding these purchases by RF Corval, the outcome represents value for the buyers and a great outcome for Properties & Pathways.”

Properties & Pathways Managing Director Cal Doggett said entering the market at the right time delivered a fantastic result for its investor base.

β€œThe fundamentals that attracted us to acquire these assets over the past four years are exactly the same characteristics that will allow the successful buyers to enjoy continued growth for years to come, despite capitalisation rates,” he said.

With its purchases, RF Corval continues to build a diversified portfolio of urban industrial assets across Australia’s capital cities benefitting from low site coverage, scarce supply, and strong tenant demand.   

β€œUnderpinned by high land values, we consider them as key defensive opportunities” CEO Rob Rayner said.

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