Fund manager Alex Abell. Image – APN Industria.
  • Sold Eight Mile Plains property for 24% premium to book value
  • Two Victorian acquisitions of warehouses
  • Gearing expected to increase by some 1.9%

APN Industria REIT (ASX: ADI) made an announcement late today that it had acquired two properties, and sold another.

Following the announcement, the company closed at $3.32, up three cents from yesterday.

ADI share price today. Image – Google

Sale of Eight Mile Plains

The Queensland property is located at 10 Brandl Street in Eight Mile Plains.

Acquired as a value add re-leasing opportunity in October 2019, the company has gone on to sell the property at a 24.2% premium to book value.

Purchased for $10 million, ADI has now sold the property for $12.55 million.

“Recycling 10 Brandl St demonstrates our ability to make sound value judgements when buying and selling.”

Alex Abell, ADI fund manager

APN Industria fund manager Alex Abell said this has been the ADI playbook over the past few years.

“Income from the property ceased in January 2021, and during the re-leasing campaign APN was approached to sell the asset at a price that exceeded the anticipated return that could have been achieved following a successful lease-up,” he said.

ADI still maintains an interest in Brisbane Technology Park assets worth $170 million, with an average cap rate of 7%.

Victorian acquisitions

The two properties are located at 57-67 Mark Anthony Drive, Dandenong South, and 137-143 Fitzgerald Road, Laverton North.

Dandenong South was purchased for $13.485 million, the Laverton North property was acquired for $24.1 million.

APN Industria said the Dandenong South property has a 5% cap rate and initial yield, with a capital value of $1,722 per square metre. The Laverton North property has a marginally higher cap rate and yield of 5.1%, the capital value is lower at $1,471 per square metre.

Both acquisitions are currently tenanted, including Uneek Bending for the Dandenong South acquisition, and Period Timber Mouldings for the Laverton North property.

As a result of the three transactions, gearing will increase by approximately 1.9% and annualised earnings accretion will be approximately 2.5%.

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