Propertylink Group (ASX:PLG) announces the settlement of an industrial asset at 12a Rodborough Road, Frenchs Forest for $20.75 million, reflecting a capitalisation rate of 7.69% and a fully let passing yield of 8.40%.
“With the Northern Beaches Hospital due for completion in the third quarter of 2018, combined with State Government infrastructure development, principally the implementation of the B Line rapid transport corridor, we see strong future prospects for office and warehousing space in the Northern beaches precinct,” Propertylink’s Chief Investment Officer, Peter McDonald said.
“This has led to an uptick in sales and leasing activity throughout the region led by Woolworths who recently leased 6,750 sqm of distribution space in Brookvale to increase proximity to their online shopping customers.
“With improving demand in the area, we think the whole precinct will provide solid rental growth in the next few years which has not been priced into this acquisition.
“The acquisition of this property provides PAIP II investors with a high-quality asset with strong covenants, in an excellent Sydney infill location.”
The asset at 12a Rodborough Road, Frenchs Forest comprises a prominent and highly functional office and warehouse facility with a total lettable area of 7,490 sqm set on an 8,725 sqm site within the tightly held Frenchs Forest commercial precinct. Occupancy is currently 82.5% with the major tenant being Integrates Technology Services Limited, a wholly owned subsidiary of Linfox Group.
The asset was acquired off market from a private vendor.
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