Propertylink offloads industrial assets to Deutsche
Recently listed real estate investor Propertylink has stepped up its capital recycling, selling two logistics facilities, in Victoria and Queensland, to Deutsche Asset Management for $73.1 million.
The properties – both refrigerated logistics warehouses – were bought three years ago for the Propertylink Australian Logistics Trust, an investment vehicle for Propertylink and the Al Salam Bank of Bahrain.
The logistics trust is one of two Sharia-compliant vehicles that Propertylink manages.
The sale was brokered by Colliers International’s Tony Iuliano and struck at a 6 per cent premium to book value.
It comes as Propertylink moves to sell a $280 million office building in the Sydney CBD, which it owns alongside longside Goldman Sachs and the seventh Duke of Westminster.
“The pleasing result for the divestment of these two assets reflects Propertylink’s strategy of recycling capital held with our institutional partners, whilst driving outstanding investment returns,” chief executive Stuart Dawes said.
“This sale adds further to the track record of Propertylink, demonstrating our ability to identify investment opportunities to generate value for our clients through active management, lease renewals, targeted capital expenditure and timely disposals.”
The two properties are leased to Rand Refrigerated Logistics. One is a facility with 10,848 square metres of space at Derrimut, in Melbourne’s west. The other, with 8413 square metres, is in Parkinson, in Brisbane’s south.
The divestment to Deutsche is one of the first major industrial deals this year in a market where institutional players are expected to push hard for control of the dwindling number of assets available for sale.
Institutional investors were responsible for some of the biggest industrial deals in 2016.
With just two transactions Blackstone became the fifth-largest industrial property owner in Australia last year.
Mapletree, Cache and Ascendas have been in the market along with local investor AMP, which made a $250 million purchase of an industrial property portfolio from JPMorgan.
The $470 million Propertylink was listed in August last year and now manages more than $1 billion of assets for investors from North America, Europe, the Middle East, Asia and Australia.
