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Case Study | 56-88 Lisbon Street, Fairfield: Disposition

CMIS_Achievements2021_ECESite_AU56LisbonSt_1536x1040

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Location (City)

Asset Type

Transaction Date

Size (Sqm)

Value (USD)

Fairfield, NSW

Industrial September 2021 83,700 $145 million

 

Buyer: Centuria Industrial REIT (CIP)

Seller: Dexus Wholesale Property Trust

Services provided: Disposition

 

Background

56-88 Lisbon Street, Fairfield, New South Wales (NSW), known as the Fairfield Distribution Centre, is one of the largest high quality distribution centres within infill Sydney. The site provides 60,223m² of modern clear span generic warehousing, leased to high quality tenants in Fantastic Furniture and DB Schenker Australia, across a site area of 83,700m².

The asset comprises net leases to Fantastic Furniture and DB Schenker Australia, with a Weighted Average Lease Expiry (WALE) of 4.1 years and fixed Weighted Average Rate of Return (WARR) of 3.1%.

The Challenge

The super prime grade facility provides minimum clearance of 11.6 metres and leasing flexibility to potentially sub-divide the improvements into 4 separate tenancies.

The market rent in the precinct has surpassed the fixed market reviews embedded in the leases and both tenancies are considered under rented by ~14%. The short WALE of 4.1 years provided an opportunity for the acquirer to leverage on a strong leasing capability to achieve positive rental reversion, capturing outsised rental growth.

The Result

The property was successfully sold off-market through Colliers' team of experts.

 

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Related Experts
Australia

Gavin Bishop

Managing Director | Industrial

Industrial

Sydney

Gavin is the Managing Director of Industrial & Head of Industrial Capital Markets Australia at Colliers, where he has been specialising in industrial property for 21+ years. Based in the Sydney CBD Head Office, Gavin manages a highly successful team of over 120 staff across every state & territory nationally in key industrial and logistics precincts.

Gavin specialises in the national industrial capital markets and has excellent relationships across a broad spectrum of institutional, international and private investors. Over Gavin’s time with Colliers, he has completed hundreds of deals in industrial property, settling over $14 billion in his career to date, and leasing over 400,000sqm. Gavin enjoys a 75% market share of industrial capital markets share in NSW.

Gavin has worked extensively in the sale of industrial portfolios of up to 30 assets in one portfolio. Gavin and his team have sold 24/34 of all industrial portfolios in Australia over the last five years, including the AMP Portfolio ($105m), J.P. Morgan Portfolio ($250m), Altis Portfolio ($342.5m), Qantas Portfolio ($802m) and GIC/Australand Portfolio ($1.073b).

Some major distribution centre sales that Gavin and his team have been involved in over the last two years include, the Calibre, Eastern Creek ($130.1 million), 1 Eucalyptus Place, Eastern Creek ($90.5 million), 3 Roberts Road, Eastern Creek ($253 millions) and 6-20 Clunies Ross Street, Greystanes ($76.6 million)

Gavin has focused on building deep relationships with his clients, providing the latest in-depth information about logistics markets across Australia, which in line with his extensive track record, has seen Gavin achieve record-breaking results for his clients.

Gavin is a long-standing member of the Colliers team, having joined in 2000 as a graduate valuer. Gavin commenced with Colliers as part of their Scholarship Program and he was fortunate to work across multiple service lines and locations across Sydney, before settling in the Industrial team in Sydney South in 2001. Over the last 20 years, Gavin has progressed through the industrial business including managing the Sydney South and Sydney South West offices, before moving into the NSW State Product Director for Industrial in 2010.

View expert
Australia

Sean Thomson

Head of Industrial Capital Markets, NSW

Industrial

Sydney

Sean Thomson works for Colliers International as Director of Industrial Capital Markets, Australia, where he specialises in the sale of industrial & logistics assets nationally.

Sean works alongside Gavin Bishop (Head of Industrial Capital Markets, Australia) on a day-to-day basis and holds excellent relationships across a broad spectrum of corporate, private, institutional and international investors.

Having been involved in excess of $14.0 billion of strategic valuation advice, his experience and understanding of the levers which can best maximise value together with the capital markets team’s track record, is integral in achieving the strongest possible result for his clients.

Sean has been involved in many large-scale portfolio divestments including:

  • Qantas Portfolio ($802 million)

  • The Super Core Logistics Portfolio ($186 million)

  • The Greenlit Brands Portfolio ($171 million)

  • Calibre, Eastern Creek ($130 million)

  • The Kaufland Portfolio ($129 million)

  • The AMP Portfolio ($105 million)

Sean holds an unmatched track record in divesting major distribution centres including:

  • The Fairfield Distribtuion Centre ($200 million)

  • Toyota South Sydney ($171 million)

  • 884 Mamre Road, Kemps CReek ($125 million)

  • 59 Lockwood Road, Eastern Creek ($107 million)

  • 37-39 Wentworth Street, Greenacre ($100 million)

  • 1 Eucalyptus Place, Eastern Creek ($91 million)

  • 342 Hammond Road, Dandenong South ($87 million)

Sean has focused on building deep relationships with key global institutional clients, providing the latest in-depth information about the logistics market across Australia, which in-line with his extensive track record, has seen him achieve record-breaking results for his clients.

View expert