Melbourne, 8 October 2014 - Swire Group subsidiary the Alex Fraser Group will tap the groundswell of buyer demand for prime industrial investment opportunities with the sale and leaseback of a circa $70 million, three-property portfolio land bank in Victoria.
CBRE’s Matt Haddon, Chris O’Brien and Rory Hilton have been appointed to steer the campaign for AFG - Australia's leading producer of recycled materials for civil construction - under the direction of Transaction Manager Charter Keck Cramer, headed by Clint Jellis.
The three properties will be offered for sale individually or in one line with Expressions of Interest to close November 20, 2014.
“The sale represents the most outstanding and strategic long-term industrial investment opportunity for the second half of 2014,” said Matt Haddon, CBRE’s Regional Director, Industrial & Logistics Services.
“It represents the perfect blend for investors of long-term secure income with considerable future development upside.”
Up for sale is 9–19 Alex Fraser Drive, Laverton North; 275–315 Kingston Road, Clarinda; and 455 Cooper Street, Epping. All three properties are to be offered for sale on the basis of initial 10 to 21-year leasebacks to AFG, equating to a portfolio WALE of circa 16.8 years.
Mr O’Brien said the offering represented the latest in a series of sale and leasebacks in the industrial sector as corporates seized the opportunity to unlock the value of their real estate holdings and reinvest funds into their core business activities.
“Given the current strength of the industrial investment market, we’ve seen a growing number of companies assess the opportunity for sale and leaseback programs in order to release funds, retain long-term occupancy of their sites and deploy capital more efficiently,” Mr O’Brien said.
Each property is located in a strategic precinct and will allow purchasers to secure a long-term land bank with a development pipeline upon lease expiry.
Mr Hilton explained; “the unique offering will provide triple net leases for each property, and include a rehabilitation clause whereby the properties will be returned to a level, cleared and benched site primed for development. Rarely has an offering served such dual benefits from a passive investment and long-term pipeline perspective.”
The 34ha Laverton North property is situated in an Industrial 2 zone and benefits from excellent access to the surrounding road network, proximity to the Melbourne Central Business District and Port area. It is being offered on the basis of an initial 21-year leaseback.
AFG’s Epping asset is of a similar size at 35.86ha and is situated within a developing industrial location immediately behind the Biodiversity Business Park with substantial exposure to the Hume Freeway. The area is subject to an impending zoning change to provide for an Industrial 1 zoning. AFG will take an initial leaseback of 15.8 years.
The third AFG asset is at Clarinda in a Special Use Zone 2 – Earth and Energy Resources zone. The surrounding uses typically include market gardens, nurseries, and waste management treatment plants, however other property holdings also include Goodman’s Chifley Business Park, Moorabbin DFO and the partially complete Moorabbin Costco along with Redwoods Garden Industrial Estate and Woodlands Industrial Estate.
AFG will take an initial 10-year leaseback over the property with further options.
The AFG portfolio is expected to appeal to a broad range of investor groups, including REITs, wholesale property funds, private equity real estate firms, superannuation funds, offshore groups and land bankers.
For Australian/international news or global stories, follow us on Twitter.About CBRE Group, Inc.
