Irongate Group, formerly known as Investec Australia Property Fund and listed on the ASX and JSE, has announced it has entered a contract for the sale of land to acquire an industrial facility in Australia for $24 750 000. This purchase price represents an initial yield of 5.3% and the acquisition will be funded through IAP’s existing syndicated debt facility.
The property was constructed in 2018 and comprises of 1 852m2 of office and warehouse accommodation plus 33 615m2 of high-quality hardstand. Leased to Grays, the largest industrial, auto, and commercial ecommerce business in Australasia, the property has a lease expiry in March 2028 with fixed annual escalations of 3.5%.
CEO, Graeme Katz says the property provides IAP with a strategic land holding of almost four hectares in the Australian Trade Coast Precinct, one of Brisbane’s premier industrial locations.
“Pinkenba is immediately adjacent to Brisbane Airport and the area will benefit from infrastructure upgrades associated with the new Brisbane International Cruise Terminal. We believe the Brisbane industrial sector currently offers relative value and the acquisition will increase IAP’s exposure to industrial property to 32% by both income and value.”
The acquisition is due to be completed on the 22nd of March 2021.