Singapore-listed ESR-LOGOS REIT has divested a logistics facility in Berkeley Vale in New South Wales to Australasian Conference Association for $55 million, reflecting an 18.5% premium.
The freehold property comprised three interconnected industrial buildings with 27,762 sqm of gross floor area.
The asset was located at 3 Sanitarium Drive within the Berkeley Vale industrial area on the NSW Central Coast region.
The sale price was also 61.8% above its purchase price of $34 million.
“In line with our capital recycling efforts to focus on modern and in-demand new economy assets, this divestment dovetails with our commitment to pursue value opportunities with potentially higher total returns,” Adrian Chui, CEO and Executive Director of the REIT’s manager.
“Divesting this property at a premium to fair value is illustrative of our portfolio recalibration strategy to unlock value from non-core properties.
“We will continue to actively review our portfolio to identify attractive opportunities for growth and deliver greater income stability to optimise unitholders’ returns.”
Following the sale, the REIT will hold 83 properties across Singapore and Australia.
Recent industrial deals include clothing business Ramo has purchased an industrial property in Milperra, Sydney in a deal worth $27 million earlier this month.
Last month, Hines bought four logistics properties spanning 58,350 sqm in Sydney and Brisbane from Pipeclay Lawson for $211.5 million, while Coombes Property Group bought an industrial landholding in Botany for $25.25 million.
Pittwater Industrial purchased a new logistics facility in Prestons for $58.255 million last month, while Leda Holdings sold a 7.71-hectare industrial infill site in Milperra in Sydney’s west in March.
In February, Logos, KKR and Mubadala Investment bought industrial development sites in Sydney and Melbourne, while Centuria Industrial REIT purchased a portfolio of six urban industrial assets located across Melbourne, Sydney and Brisbane in January.
Investment into the industrial sector continued at full steam during the first quarter of 2022, with deal volume totalling $4.1 billion.