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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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