Investec has bought two new industrial properties in NSW for a joint purchase price of $26.9 million.
Investec Australia Property Fund on Friday said the acquisitions – one in Newcastle, the other in Wetherill Park, western Sydney – contributed to a year of growth after its purchase of $147.4 million of properties over the past 12 months.
“The two newly acquired properties are underpinned by long-term leases to a single tenant, and provide the Fund with a blended yield of 7.92 per cent,” the company said in a statement.
The 12,500 square metre industrial property at Wetherill Park has 11 years remaining on the lease and an option for a further five years. Average contracted annual rental growth for the property is about three per cent.
The lease on the Newcastle property, five kilometres from the Port of Newcastle and 10km from the CBD, runs until January 2021, with a contracted 3.75 per cent rental growth and an option for a further 10 years.