Grosvenor Group and Goldman Sachs have invested with Propertylink, the Australian property investment and asset management company, in the acquisition of a combined office and industrial transaction valued at AUS$303.3 million.
In a deal that crosses the office and industrial property sectors, Propertylink acquired the 320 Pitt Street, Sydney office tower for AUS$200 million along with eight industrial assets located across Australia for AUS$103.3 million.
The acquired industrial properties will be included in the Propertylink Australian Industrial Partnership Portfolio (PAIP 1) which now has 36 assets valued at approximately $700 million. Grosvenor Group and Goldman Sachs are co-investors in PAIP 1.
Commenting on the deal, Chris Taite, Grosvenor Group Investment Director, said: “Grosvenor has been investing in Australia for nearly 50 years and this latest deal reflects our continued commitment to the market. Working with Propertylink and Goldman Sachs, we have been able to access some great opportunities of which this transaction is another good example. Our collective ability to deliver within a very tight timeframe is a great credit to the caliber of our local partners.”
The purchase of 320 Pitt Street, Sydney is Propertylink’s largest office acquisition to date. The office tower features 30,000 sqm of net lettable area and is 100 per cent leased to Telstra for 5 years. The purchase reflects an acquisition yield of 8.26%.
The eight industrial properties included in the combined transaction are located in Sydney, Brisbane, Melbourne and Perth with a weighted average lease expiry (WALE) of approximately 3.3 years. The purchase reflects a passing yield of 10%.
Peter McDonald, Executive Director and Head of Property of Propertylink said: “We are pleased to see the majority of capital in the market pursuing prime long-WALE assets. In the coming weeks we will see a number of prime asset deals announced that will be at historical low yields and which will re-rate the industrial sector. We fully expect the PAIP portfolio to benefit from this trend,” Mr McDonald said.
Steve Day, Managing Director of Propertylink added: “This combined transaction is a significant deal that crosses both the industrial and office sectors. We are delighted that our investors in PAIP 1 are investing alongside Propertylink with the value-add office strategy.”
For more information contact:
Sorrel Basher, Press Office
020 7312 6101
Notes to Editors
Grosvenor Group Limited is a privately-owned property group with offices in 17 of the world's most dynamic cities. We have regional investment & development businesses in Britain & Ireland, the Americas and Asia Pacific. Our international fund management business operates across all these markets and also Continental Europe. We also have an international Indirect Investments portfolio, which is managed from Grosvenor’s London headquarters: it is this part of the Group which has invested in PAIP.
Propertylink is a leader in Australian property and infrastructure, successful and growing in:
Our sectors of operation are office and industrial real estate and infrastructure.
At present, Propertylink has in excess of $2 billion of assets under management, in Sydney, Melbourne, Brisbane and Perth. We measure our success by delivering better risk adjusted returns for our clients.
Propertylink services clients throughout Australia and has particular expertise in meeting the needs of international investors and investment managers.