Australian property firm GPT has snapped up five prime logistics properties in Sydney for A$212m (US$146.8m) and started a new development in Melbourne’s west.
The Sydney assets have a total lettable area of 88,200 sq.m., a combined weighted average lease expiry of 8.6 years and an initial passing yield of 5.4%.
The acquisitions are expected to close in July, the buyer said.
The group, which has A$24bn of assets under management, also started a 26,000 sq.m. logistics project at Truganina in Melbourne’s west.
“These acquisitions and developments are consistent with GPT’s strategy to grow our position in the logistics sector,” said GPT CEO Bob Johnston.
“The assets are all well located with good access to transport links and will benefit from ongoing demand and constrained supply.”
The deal comes after GPT acquired two prime logistics assets and an 8.9-hectare parcel of land in the western Melbourne suburbs of Derrimut and Truganina in February this year.
The transaction included a 10,700 sq.m. warehouse on Mount Derrimut Road and an almost 11,000 sq.m. facility on Boundary Road in Truganina.
The company said it was expecting strong demand for logistics facilities in western Melbourne based on continued population growth and the gentrification of traditional industrial hubs like Port Melbourne and Fishermans Bend.
At the time, the company said it had completed six logistics developments since mid-2017, adding A$240m to its investment portfolio.
GPT is one of Australia’s largest diversified property groups and owns retail, office and logistics real estate across Australia.
The company listed on the Australian stock exchange as Australia’s first ever property trust in 1971.
It was launched and managed by Australian property firm LendLease until it was spun out in 2005.