Perth syndicator divests $78.8m portfolio

Perth-based property syndicator Properties & Pathways has concluded the sale of its tri-state and industrial logistics portfolio, which includes a $12 million Welshpool asset.

The Subiaco-based syndicator sold its remaining four industrial properties to east coast specialist property investment group RF Corval for a total of $45.7 million.

RF Corval bought 23-29 Fargo Way in Welshpool for $11.99 million this September.

Its other two properties in the portfolio, one in Laverton in Victoria and Larapinta in Brisbane, were purchased by two separate entities in 2021, for a total of $33.1 million.

Properties & Pathways managing director Cal Doggett said entering the market at the right time paid off for its investor base, reflected in the $78.8 million divestment.

“The fundamentals that attracted us to acquire these assets over the past four years are exactly the same characteristics that will allow the successful buyers to enjoy continued growth for years to come, despite capitalisation rates,” he said.

RF Corval chief executive Rob Rayner said his company would continue to build a diversified portfolio of urban industrial assets across Australia’s capital cities.

He said he was drawn to the assets for their low site coverage, scarce supply, and strong tenant demand.

“Underpinned by high land values, we consider them as key defensive opportunities,” he said.

RF Corval’s purchase comprised three landholdings in Brisbane and the Welshpool property, equating to a total site area of 69,000sqm and gross lettable of 28,000sqm.

The assets were sold on an initial yield of 5.98 per cent, with below market passing rents.

CBRE’s Jack Pershouse brokered the deals on behalf of Properties & Pathways.

“The Properties & Pathways portfolio featured a quality spread of incoming producing assets across core logistics locations,” he said.

“These low-site-coverage landholdings generated strong interest, given their locations and accessibility, combined with pending lease expires and low vacancy rates that are allowing buyers to factor in plausible future rental growth.

“Including these purchases by RF Corval, the outcome represents value for the buyers and a great outcome for Properties & Pathways.”