Perth-based property syndicator Properties & Pathways has completed its divestment of a tri-state industrial and logistics portfolio for $78.8 million.
The portfolio held six assets across Melbourne, Brisbane and Perth, comprising 120,000 sqm of industrial land in infill locations.
Together, the assets offered 40,000 sqm of gross lettable area (GLA) and a weighted average lease expiry of four years.
RF Corval purchased the final four properties for a total of $45.7 million on behalf of two separate funds.
The sale price reflected an initial yield of 5.98%, with the passing rents considered below-market.
RF Corval’s acquisition included three landholdings in Brisbane and one in Perth with a combined total site area of 69,000 sqm and GLA of 28,000 sqm.
RF Corval continues to build a diversified portfolio of urban industrial assets across Australia’s capital cities benefitting from low site coverage, scarce supply, and strong tenant demand.
“Underpinned by high land values, we consider them as key defensive opportunities,” RF Corval CEO Rob Rayner said.
Properties & Pathways Managing Director Cal Doggett said entering the market at the right time delivered a fantastic result for its investor base.
“The fundamentals that attracted us to acquire these assets over the past four years are exactly the same characteristics that will allow the successful buyers to enjoy continued growth for years to come, despite capitalisation rates,” he said.
CBRE’s Jack Pershouse managed the sale campaigns on behalf of Properties & Pathways.
“The Properties & Pathways portfolio featured a quality spread of incoming producing assets across core logistics locations,” Pershouse said.
“These low-site-coverage landholdings generated strong interest, given their locations and accessibility, combined with pending lease expires and low vacancy rates that are allowing buyers to factor in plausible future rental growth.
“Including these purchases by RF Corval, the outcome represents value for the buyers and a great outcome for Properties & Pathways.”
The other properties in the portfolio, one in Laverton in Melbourne and Larapinta in Brisbane, were purchased by two separate parties in 2021.
