5 August 2019 – (Sydney, Australia) EG, a leading Australian real estate fund manager, is pleased to announce the recent acquisition of 230 Captain Cook Dr, Kurnell, NSW for $36.0 million.
Located approximately 30 mins drive from Sydney Airport and Port Botany, the two-level commercial building and industrial warehouse built over three stages between 2010 and 2013 consists of 15,955sqm of gross lettable area.
The asset has been acquired on a two-year leaseback to Dicker Data (asx: DDR), a leading distributor of IT hardware, software cloud and loT solutions. The net passing income of $2.1 million p.a. delivers an initial yield of 5.8%.
The acquisition is the first property secured for the Australian Core Enhanced Fund (ACE), just one month after the $800 million fund was launched. ACE is an open-ended, diversified fund targeting office, retail and industrial assets.
“This acquisition is an exciting first step for our new Core Enhanced Fund” said Head of Australian Core Enhanced Fund Daniel Farley.
“The Dicker Data facility offers a newly constructed, high-quality industrial facility located within a gentrifying precinct with strong tenant demand. We are strong believers in the underlying drivers behind the broader industrial market and this asset is perfectly positioned to benefit given the short leaseback period. EG is looking forward to many more successful acquisitions for our investors in the ACE fund.”
EG ACE will be opened to further investment for the next 12 months, targeting up to an additional $500m of equity commitments.
The transaction was brokered off-market by Trent Gallagher of Colliers International.