Dexus has announced the acquisition of 37-39 Wentworth Street, Greenacre and the Ford Facility at Merrifield Business Park, Mickleham under the Dexus Australian Logistics Trust.
Dexus has revealed two new additions to the Dexus Australian Logistics Trust, of which it has a majority share.
The company announced that properties at 37-39 Wentworth Street, Greenacre NSW and the Ford Facility at Merrifield Business Park in Mickleham, Victoria, have been acquired for a combined price of $173.5 million.
The Greenacre facility has 19,246 square metres of modern cold store and ambient space that is leased to Real Dairy Australia and Tomkin.
At a glance:
It includes 5,950 square metres of expansion space currently under development for Real Dairy Australia.
The site comprises circa 4 hectares and benefits from connectivity to major arterial roads such as M4 and Centenary Drive, with immediate proximity to the Enfield intermodal terminal.
In February 2021, on practical completion of the expansion space currently under development, the asset will have a weighted average lease expiry by income of circa 13.5 years and will generate a passing yield of 5 per cent, with fixed annual increases of 3 per cent per annum.
Settlement of the existing facility and the expansion land is expected in July 2020.
The Merrifield site is a brand new 51,595 square metre prime grade logistics facility currently being developed for Ford Australia as its national distribution centre for spare parts.
The site is located in an emerging industrial market, strategically located for metropolitan and interstate goods distribution, providing direct access to the Hume Highway, easy connections to the Western Ring Road and Melbourne airport.
The acquisition is structured as a fund-through development with a coupon on contributed capital of 6.5 per cent up to practical completion in August 2021.
On completion, the asset will have a weighted average lease expiry by income of 10 years and will generate a passing yield of 5.25 per cent with fixed annual increase of 3.25 per cent over the initial lease term.
Settlement of the land component is expected in July 2020.
Dexus CEO Darren Steinberg said both properties were aligned with the direction of the trust.
“These acquisitions build on the Dexus Australian Logistics Trust’s mandate to acquire quality, well-leased assets that deliver favourable total returns and increase the total group industrial exposure to over $5 billion," he said.
The acquisitions follow the completion or exchange of more than $1.6 billion of property acquisitions across the group during FY20.
Each investor in DALT will fund their respective share of acquisition costs, with Dexus’s interest to be funded from existing debt facilities.
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