Heathley offers $40m industrial logistics portfolio
Sydney-based Heathley Asset Management has put a $40 million portfolio of high quality industrial logistics on the eastern seaboard on the block as it focuses its attention on medical property.
Heathley, traditionally a holder of office and industrial assets, has built up its holdings in the medical and aged-care area to about $650 million, and is now selling the pair of industrial assets in Sydney and Melbourne.
The logistics sector is almost as hot as medical property and Heathley, together with its asset manager Logos, have tapped CBRE and Colliers International to sell the properties.
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The portfolio, comprising of a Johnson Rd facility in Campbelltown, NSW and a Ferntree Gully Rd complex in Scoresby, Victoria, will be sought by local and offshore groups.
Both assets sit near major arterial road networks and benefit from surrounding government infrastructure projects.
An industrial facility at 1 Johnson Rd in Campbelltown is one of two included in the portfolio.
The properties span a total building area of 24,365sqm and a site area of 44,914sqm. The long weighted average lease expiry of just over nine years and the combined net income of about $2.32 million per annum will also draw buyers.
Chris O’Brien of CBRE said the portfolio’s scale, strong lease covenants, long lease expiry and eastern seaboard location would be key factors.
“Quality lease covenants in ZircoDATA Pty Ltd, Australia’s premier records and information management business, and P’Auer Pty Ltd, a subsidiary of the listed PACT Group, will provide long term security of cash flows,” O’Brien says.
There was strong demand for industrial investment sales in 2017 across Victoria, with transaction values up 43%, while NSW sales were down 18 per cent due to the limited availability of stock on the market.
Colliers International national director of industrial Gavin Bishop says that low interest rates and robust economic fundamentals, accompanied by the weight in capital chasing industrial investments, means significant demand is expected.
This article originally appeared on www.theaustralian.com.au/property.
