Propertylink buys $142m portfolio ahead of IPO

Property asset group Propertylink is set to acquire a $142 million industrial portfolio from Denison Funds Management, in an announcement just days ahead of its initial public offering.

The group, acting on behalf of its new Property Enhanced Partnership, will buy nine industrial and logistics facilities in New South Wales, Victoria, Queensland and Western Australia.

As part of the agreement, Propertylink Enhanced Partnership could also acquire another four properties worth $28 million, should third-party buyers already slated to purchase those properties not complete the sales.

The announcement comes less than a week before the company’s IPO and listing on the Australian Securities Exchange, which is expected to raise about $500 million.

The core properties are well-located and present strong investment fundamentals

Propertylink CEO Stuart Dawes says the portfolio features a strong tenant profile.

“The acquisition of the Denison portfolio is an opportunity to source a sizable portfolio of assets with significant upside that can be unlocked with Propertylink’s management expertise to deliver superior risk weighted returns,” he says.

“The core properties are well-located and present strong investment fundamentals, with 70% of tenants being either publicly listed companies, multinational companies or Australian Government departments.”

Propertylink Enhanced Partnership is a newly-minted external fund, backed by Propertylink and Goldman Sachs. As part of the deal, Propertylink will provide $17.7 million worth of equity to PEP.

The nine properties have an average weighted lease expiry of 3.25 years.