Perth-based boutique investment and development firm, GM Property Group, has made its fourth interstate asset acquisition in the last 12 months, buying an industrial property in Sydney’s Blacktown for $7.65 million.
The Blacktown property comprises two office warehouse buildings with a gross lettable area of 8,346 square metres, while the deal achieved a passing yield of 9.5 per cent.
GMPG plans to refurbish and re-lease the building once its existing tenancy agreement expires in November.
“We identified this property as a strategic investment, with excellent leasing prospects and
compelling industrial fundamentals,” GMPG director Blair Gerrard said.
The acquisition adds to GMPG’s existing industrial portfolio, which comprises eight assets in five states, collectively worth $104 million.
GMPG’s land development arm has a pipeline of about 350 lots, with an end value of $150 million.
Mr Gerrard said the company had been watching the Sydney market closely since making its first NSW acquisition through an industrial property in Smithfield in 2013.
He said the Blacktown asset met all of the group’s investment criteria.
‘‘This property is in a prime, tightly-held location with an expansive street frontage, three street crossovers and improvements – while not modern – that provide excellent bones for us to work with to secure prospective tenants looking for clear span, high-clearance affordable warehousing space,” Mr Gerrard said.
“The added flexibility of two freestanding buildings, and ability to add value through building extensions and managing leasing risk, also presented significant appeal.”
The deal was brokered by commercial agency Savills.