Fund manager EG has bought two industrial sites in the Melbourne suburbs of Blackburn and Blackburn North from Forza Capital for $79 million.
The properties at 15-33 Alfred Street, Blackburn and 6-16 Joseph Street, Blackburn North provide a combined gross lettable area of approximately 28,020 sqm.
The assets have a blended weighted average lease expiry of 5.52 years and are leased to a variety of industrial, office and recreational use tenants.
“Urban industrial assets such as these offer good access to high-density catchments and large populations and are playing an increasingly important part in the supply chain for businesses seeking fast access to their customers,” said EG’s Head of Capital Transactions Sean Fleming.
“They just aren’t making any more urban industrial land.”
The properties were secured via a post-market approach through CBRE and were acquired on behalf of EG’s Australian Core Enhanced (ACE) fund.
The new acquisitions come after the fund received a new international equity commitment in April that increased the fund to $1.25 billion.
“The latest ANREV data is showing us that Sydney and Melbourne logistics are the most sought-after asset class across the entire Asia Pacific region so investment success requires a proactive approach on the ground that EG is well equipped to deliver,” said ACE Fund Manager and Executive Director Chris Pak.
The transactions follow EG ACE’s acquisition of an industrial estate in Sydney’s eastern suburbs for $33 million in August this year.
In late June, the fund purchased an industrial site in the outer suburbs of Brisbane for $21.5 million and entered into an agreement with Frasers Industrial Property to build a new 12,157sqm warehouse facility.
The fund also bought a portfolio of three office assets in Sydney for approximately $450 million that month.
In other industrial property transactions, LBP Developments sold a prime industrial development site in Southwest Sydney to a private developer for $16.3 million last week.
Last month, Dexus Industria REIT exchanged contracts to buy a warehouse in the Brisbane suburb of Narangba for $44.5 million, while Centuria Industrial REIT acquired a portfolio of four industrial properties across Sydney, Melbourne and Brisbane for $129.4 million.
In September, a development site in the Western Sydney Aerotropolis sold for $30 million-plus following strong buyer interest.