25/11/2014 - 13:43

Lester Group makes first NSW purchase

25/11/2014 - 13:43

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Lester Group makes first NSW purchase
Lester Group bought this NSW industrial property in a syndication deal worth $13.2 million.

Property developer and investment firm Lester Group has inked its first deal in New South Wales, buying an industrial property in Sydney’s Ingleburn for $13.2 million.

The syndication deal is Lester Group’s second interstate purchase, following the $22 million buy of an office asset on Melbourne’s St Kilda Road last year.

The Sydney property comprises a 10,327 square metres warehouse with 1,237sqm of associated office space.

It is leased to specialist manufacturing firm Broens through to the end of the decade, with a further five-year plus three-year option.

Annual rental is more than $1.1 million, with 3.5 per cent yearly increases.

Lester Group director Russell Lester said the company had looked closely at east coast markets since the Melbourne buy, evaluating a number of opportunities over the past year.

“This property was one that stood out to us – securely leased to a major tenant, poised to enjoy the benefits of a strengthening New South Wales economy and a purchase price below the replacement cost of the asset,” Mr Lester said.

Investors in the syndicate will receive a first-year cash return of 8.5 per cent, while Mr Lester said the forecast average return was more than 9 per cent over the six-year term.

The minimum investment in the syndicate is $250,000.

Mr Lester said the group had pitched in $1 million to the $7 million already raised by the syndicate.

“We continue to actively look at assets in Melbourne, Sydney and Perth that, like this one, tick the boxes and fulfil our objective of providing the best possible returns to investors,” he said.

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