BlackstoneGroup has bought a portfolio of four industrial properties at SmeatonGrange worth nearly $50 million all up and with a total warehouse area of nearly 30,000 square metres. Three of the properties remain privately tenanted, the fourth is tenanted by ACM Parts.
Blackstone is a US multinational private equity, alternative asset-management and financial services firm based in New York. It’s the largest alternative investment firm in the world, according to Wikipedia, and it specialises in private equity, credit and hedge-fund investment
The purchase of the four industrial properties was announced on November 13.
The off-market sale, conducted by CBRE, included four industrial properties spanning a total warehouse area of about 29,500 square metres.
The A-grade properties are at 157 Hartley Road, 145 Hartley Road, 23 Anzac Avenue and 18 Anzac Avenue. Three of the four properties will remain privately tenanted until late next year.
We’re seeing an increased demand for owner-occupiers and investors down the M5 corridor on the back of major infrastructure projects.Mr ROURKE
The property at 18 Anzac Avenue is tenanted by ASX-listed company ACM Parts. CBRE’s AdamTresidder, MosheGreengarten, JasonEdge and TomRourke ran the off-market sale on behalf of the private vendor.
“Given the scale and quality of these properties, we identified an opportunity for the vendor to maximise returns by bundling four of their assets into one portfolio,” Mr Tresidder said. “Blackstone was attracted to the portfolio’s compelling investment fundamentals.
“Furthermore, the varying warehouse sizes also provided an ability to spread, which was another key attraction.
“We’re currently seeing strong rental growth in the sub-5000-square-metre market, with two of these four assets acquired sitting within this range.”
Mr Rourke said the sale represented one of just a few industrial transactions in Sydney’s outer south-west in recent months.
“Stock supply remains tight in the outer south-west with yields continuing to compress in the fourth quarter of this year,” he said.
“We’re seeing an increased demand for both owner-occupiers and investors down the M5 corridor on the back of major infrastructure projects and the regentrification of former industrial precincts around south Sydney.”