GPT Group to sell industrial parks to NashCap for about $250m

The deal on a pair of properties in Sydney and Melbourne is one of the largest portfolio trades in industrial property this half.

GPT Group, led by Bob Johnston, is involved in one of the largest portfolio trades in industrial property in this half. Picture: James Croucher

Listed property giant GPT Group is selling two eastern seaboard industrial parks to private equity real estate company NashCap for about $250m.

The deal on a pair of properties in Sydney and Melbourne is one of the largest portfolio trades in industrial property in this half and shows the asset class is still attracting capital despite the slower pace of sales.

Industrial property is still a drawcard at a time when office and retail property are under pressure, partly as it is benefiting from the switch to e-commerce and strong rents are coming through even as capitalisation rates come under pressure.

Ray White Capital’s Ian Hetherington brokered the deal off-market but declined to comment.

NashCap has been growing its empire since last year teaming with funds managed by US investment giant BlackRock to invest in last mile logistics real estate in Australia, when it flagged plans to assemble a $1bn portfolio.

The NashCap-founded venture, known as Urban Logistics Co, has been actively buying assets for about two years, building a portfolio of small-scale warehouses on landholdings of more than 500,000sq m.

The assets are located in the hot Sydney and Melbourne markets, and on average, sit just 10km from the CBDs.

The group has mainly stayed under the radar and the move on the GPT assets is its biggest play.

It is buying the Citiport Business Park in Melbourne’s inner western suburbs. The property includes a modern low-rise office building and 10 warehouse and showroom facilities. The estate benefits from its proximity to the Monash and Westgate freeways.

The office component of the asset, 650 Lorimer St, has achieved a 5-star NABERS Energy rating and a 4-star NABERS Water rating. It spans 26,900sq m and was held at $117.5m. It was about 84 per cent occupied and has a weighted average lease expiry of about three years.

NashCap is also picking up the Rosehill Business Park in Sydney’s Camellia. It has three office and warehouse facilities leased to national occupiers, including Australian Pharmaceutical Industries and Linfox. Camellia is near the Parramatta CBD and close to the M4 Motorway and James Ruse Drive.

The 41,900sq m facility was held at $118m and is fully occupied with a short weighted average lease expiry of 1.3 years.

GPT is still forging into logistics and is well positioned to launch a major fund using the almost $700m Ascot portfolio it picked up last year, Macquarie said in September.