Propertylink adds $23.54 million of Victorian property to portfolio

Propertylink, a Sydney-based property investment and asset management company, has bought two Victoria sites for $23.54 million.

The properties, 82 Taryn Drive, Epping, and 18-24 Ricketts Road, Mount Waverley (pictured above), were bought under their Propertylink Australian Industrial Partnership. This includes $230 million in nationwide assets.

Managing director of Propertylink, Steve Day, said that they have a track record of industrial ownership and development.

“The Epping asset features 100% occupancy from a single tenant, Stanley Black & Decker, a Fortune 500 company and one of the world’s largest and most renowned provider of industrial tools, household hardware and security products,” Day said.

He notes that the asset was chosen partly due to its modern and functional style and 8.75% yield. The gross building area covers 10,500 square metres, while that of the Mount Waverley purchase covers 8,806 square metres.

“We expect yields for these types of high-quality assets to continue to tighten in the short to medium term,” he said.

Head of property at Propertylink, Peter McDonald, said that the Mount Waverley purchase is 50% office, 50% warehouse with 82% occupancy at present.

“This is located in the tightly-held prime south-east precinct of Melbourne and we see a real opportunity to bolster the property yield to around 11.5% and add value through strata sub-division,” McDonald said.

“We continue to see significant amounts of capital chasing large prime, long lease assets. However, our strategy is to look for opportunities to add value through repositioning of assets to achieve higher returns.”

They recently purchased 10 industrial properties from Abacus Property Group, totalling $106 million.