Dexus Australian Logistics Trust, in which Dexus holds a 51% interest, has agreed to acquire two industrial properties, 37-39 Wentworth Street, Greenacre NSW (Greenacre) and the Ford Facility at Merrifield Business Park, Mickleham VIC (Merrifield), for A$173.5 million, (Dexus share A$88.5 million).
“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,” said Darren Steinberg, Dexus CEO.
Greenacre is a 19,246 square metre modern cold store and ambient facility leased to Real Dairy Australia and Tomkin. It includes 5,950 square metres of expansion space currently under development for Real Dairy Australia. The site comprises circa 4 hectares and is located 13 kilometres west of the Sydney CBD benefiting from excellent connection 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%, with fixed annual increases of 3% per annum. Settlement of the existing facility and the expansion land is expected in July 2020.
Merrifield is a brand new 51,595 square metre prime grade logistics facility currently being developed for Ford Australia as their 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% 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% with fixed annual increase of 3.25% over the initial lease term. Settlement of the land component is expected in July 2020.