03/03/2009 - 14:41

Boral to sell Bunbury property

03/03/2009 - 14:41

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Construction company Boral plans to sell and leaseback 11 of its Australian properties, including a landholding in Bunbury, as part of its ongoing management of its land assets.

Construction company Boral plans to sell and leaseback 11 of its Australian properties, including a landholding in Bunbury, as part of its ongoing management of its land assets.

In a statement, realtor CB Richard Ellis Group said it had been appointed to coordinate the sale which involves properties in every state and territory except Tasmania and the ACT.

CBRE regional director, industrial investment properties, Greg Cohen said the diversified portfolio was expected to attract significant interest, given the strength of the Boral covenant and the size of the assets, which range in value from $1 million to $5 million.

The portfolio includes a range of selected distribution yards and windows fabrication facilities offering annual net incomes ranging up to $435,000.

For the Bunbury property, located on Halifax Drive, Boral is offering a net rent of around $85,000 per annum for a one year period.

CBRE is inviting expressions of interest for the properties, with submissions due before the end of March.

 

 

 

The CBRE announcement is below:

 

 

 

Leading construction materials company Boral has announced plans for the sale and leaseback of 11 distribution and light manufacturing/fabrication properties across Australia as part of the ongoing management of its land assets.

CB Richard Ellis has been appointed to coordinate the portfolio sale which involves properties in Western Australia, South Australia, Victoria, New South Wales, Queensland and the Northern Territory.

The various properties will be offered for sale through a public campaign closing late March 2009.

CBRE Regional Director, Industrial Investment Properties, Greg Cohen said the diversified portfolio was expected to attract significant interest, given the strength of the Boral covenant and the size of the assets, which range in value from $1 million to $5 million.

A Boral spokesperson said sale and leasebacks had become a common feature of corporate planning in recent years as a means of efficiently redeploying capital. The capital currently invested in the ownership of properties without intrinsic value, such as resource access or special use rights, can be reallocated to other parts of the group, while at the same time retaining occupancy rights over these important facilities.

The portfolio involves a range of selected distribution yards and windows fabrication facilities offering annual net incomes ranging up to $435,000.

On offer are Boral facilities at Bunbury in Western Australia; Elizabeth West and Plympton in South Australia; Shepparton, Thornbury and Bayswater in Victoria; Byron Bay in NSW; Winnellie in the Northern Territory; and Garbutt, Aitkenvale and Biggera Waters in Queensland.

"The sale continues the trend for corporates to consider sale and leaseback opportunities as a means to unlock value, retain long-term occupancy of their sites and deploy capital more efficiently," Mr Cohen said.

"In today's low interest rate environment, we expect there will be strong demand for properties of this size which offer the security of a multinational tenant."

Some of the Boral sites were also under utilised, offering development potential for the future owner, Mr Cohen said.

The portfolio sale has been announced amid signs of increased private investor demand for well leased property investment opportunities.

According to CBRE Research, private investors were the dominant purchaser group in 2008. A similar trend is anticipated this year following a continued decline in the official cash rate, which is spurring investors to consider alternate investment opportunities.

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