Australian investment manager BKC and MEC Global Partners Asia (MECGPA), the investment management arm of Mitsubishi Estate, have acquired a central West Sydney industrial estate from Colliers for A$127.5m (€76.9m).
The Cumberland Industrial Estate at 3 Herbert Place in Smithfield features a 7.4ha landholding with approximately 28,746sqm of warehouse and office accommodation divided across three freestanding logistics facilities.
The acquisition is in line with BKC and MECGPA’s strategy to target industrial assets in core logistics markets, focusing on active asset management, rental reversion and future asset repositioning, the companies said.
Kevin Ghazi, managing director and CEO at BKC, said: “Cumberland Industrial Estate is a high-quality infill industrial asset located in one of the most established logistics markets in Sydney’s Central West.
“The estate benefits from strong underlying real estate fundamentals, excellent connectivity and meaningful rental reversion potential. This is our first transaction with MECGPA and we look forward to working closely with the MECGPA team to execute our asset management strategy.”
Luke Tarrant, head of Australia at MECGPA, said: “The Cumberland Industrial estate provides MECGPA with exposure to a tightly held core industrial precinct comprising three modern, self-contained logistics facilities.
“The estate is 100% leased to three high-calibre industrial companies with a [weighted-average lease expiry] of approximately four years. The strong underlying fundamentals of the Sydney industrial market, and particularly this infill last-mile location, make this a compelling addition to our portfolio.”
Trent Gallagher, Colliers national director, industrial and logistics, said: “The result highlights the strong demand we’re seeing for high-quality industrial assets in core Western Sydney locations, particularly those offering scale, secure income and significant rental reversion and investors are increasingly focused on opportunities where they can capture rental growth over the medium term.”
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