Stride Property Group’s new Industre Property joint venture with international institutional investors has acquired an Auckland industrial property at 468 Rosebank Rd, Avondale, for $4.4 million and has an unconditional agreement to acquire a 20.08ha property at 4-14 Patiki Rd, Avondale, for $21.75 million at a 5.95% initial yield, with settlement expected in August.
They will take the additions to its initial $398 million portfolio to $41.7 million.
Industre was launched a month ago with one property, at 1 Ross Reid Place, East Tamaki, added to the initial portfolio. It was bought for $15.5 million at an initial 5.5% yield. That purchase was settled on Friday.
Stride chief executive Philip Littlewood said the Patiki Rd property was a redevelopment opportunity with excellent transport connectivity. It’s leased for 35 months from settlement to Valspar Paint Ltd, which has the ability to terminate all or part of the lease after 18 months.
The 0.4ha property at 468 Rosebank Rd is adjacent to Industre’s existing asset at 460 Rosebank Rd. Mr Littlewood said the addition enhanced the street access & utility of the existing asset and would provide greater flexibility for future site use. Most of the improvements at 468 Rosebank Rd will be demolished to provide yard area & full site drive-around for 460 Rosebank Rd. On completion of the works & letting, the investment is forecast to deliver a stabilised yield of 5.9% on cost.
Industre will operate through a special purpose vehicle advised by JP Morgan Asset Management.
The venture started with 11 of Stride’s industrial properties & Stride ownership at 70%, through new subsidiary Stride Industrial Property Ltd.
1 July 2020: Stride’s Industre joint venture starts operations
16 March 2020: Stride’s new Hamilton property destined for Industre investment venture
5 September 2019: Stride creates new portfolio owner Industre in partnership with JP Morgan
Attribution: Stride release.