- Acquisition of two industrial facilities, currently being built
- Kensington (QLD) property expected to be completed December 2021
- Morningside (QLD) property expected to be completed November 2021
Irongate Group (ASX: IAP) has had a strong start to 2021, with a number of acquisitions. In February, they completed the Brendale (QLD) acquisition at 3 Beclonnen Crescent. The more than $15 million property acquisition was followed a month afterwards by another Brisbane acquisition in Pinkenba (QLD) for $24.75 million, both assets are industrial properties.
The company announced two more acquisitions this week, one industrial facility in Kingston, and the other industrial facility in Morningside.
The 57-83 Mudgee Street property was “acquired on a fund-through basis”.
Total consideration came in at $14.32 million, the company said it “represents an initial yield of 5.73%”, after transaction costs that number comes down to 5.67%.
The purchase sees Irongate make an initial payment for the Kingston property of $3.05 million for the land, “the balance to be progressively paid until completion of construction, which is anticipated to occur in December 2021.”
“once completed, the Kingston Property will comprise two brand new, high quality generic warehouse and distribution facilities with 2,270m² leased to Construction Sciences for 10 years with fixed annual escalations of 2.5% and 3,250m² leased to Waco Kwikform for 8 years with fixed annual escalations of 3.0%. The average rent across the two facilities is $149/m².”
Graeme Katz, IAP CEO
The industrial facility is expected to be completed by November this year, located at Lot 24, Dunhill Crescent.
Coming in at a lower total purchase consideration, the Morningside property went for $5.932 million, the company said the initial yield is 6.02%, 5.96% after transaction costs.