Propertylink sells Rydalmere site at 25 percent premium to book value

Propertylink Group (ASX:PLG) has exchanged contracts for the sale of two manufacturing warehouses in Rydalmere for $27.5 million.

The sale price represents a 25 per cent premium to book value.

The property at 10-12 Pike Street, Rydalmere, NSW, is 21km west of the Sydney CBD and 4km east of the Parramatta CBD.

It comprises a net lettable area of 20,022sqm that is currently 100 per cent leased to scaffolding and framework provider, Waco Kwikform Ltd, with an expiry date of June 2018.

The asset is held on the Propertylink Group balance sheet and was valued at $21.9 million in June 2016.

With just over a year to run on the lease, its sale will support the uptick of the weighted average lease expiry of Propertylink’s total portfolio to 4.4 years.

Peter McDonald, the head of property said the Sydney industrial market is very strong with very little vacancy.

"Accordingly we are seeing examples of frustrated occupiers paying big premiums to book value.”