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Prestons logistics facility sells: JLL

Prestons Logistics Facility

JLL says Roger Miller, Capital Markets Industrial & Logistics (NSW) Senior Director and Tony Iuliano, Head of Capital Markets Industrial & Logistics Australia brokered an exclusive deal for Prestons property.

The company says Pittwater Industrial has bought the logistics facility for $58.25 million

at a yield of 3.35 per cent and it could be the most impressive industrial investment of the year.

It adds the purchase has come as companies vie for quality logistics assets, which are fuelled by an ever-increasing capital pool.

Roger Miller and Tony Iuliano brokered 5 Yarrawa Street on behalf of Loftex Property via an on-market International Expressions-of-Interest campaign.

“Despite the broader economic headwinds experience across Australia as a result of ongoing disruptions of COVID-19, there has been significant yield compression recorded over the previous 12 months,” Roger says.

“This is a result of the ongoing weight of capital seeking exposure to the logistics sector in core markets and the current imbalance of quality opportunities to meet this insatiable demand,” he adds.

“We are seeing the results of the e-commerce boom continue to push occupancy demand for industrial assets. In support of this theme, the Prestons property generated significant interest from both domestic and overseas capital. Additionally, our client’s foresight to develop the improvements to premium quality proved astute.”

The Prestons property occupies a 2.723 ha corner site with a brand-new logistics facility totalling 15,066 sqms and is close to the M7 Motorway. It was pre-committed to Australia’s largest privately-owned freight logistics operator, ACFS Port Logistics. ACFS committed to a seven-year WALE from practical completion.

JLL says Loftex Property acquired the land in 2019, and speculatively developed the site into an institutional grade logistics facility of the highest quality in design, construction, and sustainability.

“The race to net-zero has increased demand for sustainable industrial assets, at a time where demand for these assets is already outstripping supply,” Tony says.

“Tenants and investors alike want facilities with sustainable features, where these efficiencies can reduce operating costs and align with the long-term sustainability goals of companies,” he adds.

“As a result, these premium assets come with a premium price tag.”

JLL says Pittwater Industrial acquired this asset to complement its recent purchase of 373 Horsley Road, Milperra, a development site capable of producing approximately 19,000 sqms of high-quality logistics with the premises set to be available in 2023.

“Assets of such high-quality amenity, location and tenant covenant provides the perfect foundation for our business to look to the future with confidence,” Andy Stubbs, Pittwater Industrial’s Chief Investment Officer, says.

“Regardless of the prevailing market conditions, Prestons will continue to remain relevant and resilient.”

JLL says the facility has an extensive array of premium unique features to support sustainability, including LED lighting, translucent roof panels, rainwater harvesting, smart metring, and roof solar panels.

It notes the warehouse has full insulation on the north-western and western walls, and an onsite substation provides 1000KV of power while still preserving the extensive environmental sustainability rating through use of a 200kw solar PV.

For more information on JLL, click here.

 

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