AMP Capital buys up industrial portfolio

Fund manager AMP Capital has paid $2 million for a portfolio of six industrial properties in Sydney from JP Morgan Asset Management.

The portfolio will be held by the AMP Capital Diversified Property Fund (ADPF) and will bring the fund’s worth to about $4.7 billion.

The six warehouse and logistics facilities have a total area of about 1,000 sqm and comprise a logistics facility in Fairfield leased to Fantastic Furniture and DB Schenker (pictured); a warehouse and distribution centre at Huntingwood leased to DHL; a warehouse facility at Minchinbury leased to Star Track Express; a warehouse and manufacturing facility at Villawood leased to Pact Group; an office warehouse facility at Kingsgrove, leased to Shriro Australia; and a warehouse and manufacturing facility at Blacktown leased to Snack Brands.

Initial yield to the purchaser is believed to be about 6.5 per cent.

Colliers International’s Gavin Bishop and Tony Iuliano, in conjunction with CBRE’s Chris O’Brien and Matt Haddon were agents for the sale.

ADPF Fund Manager Kylie O’Connor says the acquisition is consistent with the fund’s strategy to increase weighting to the industrial sector and exposure to Sydney. 

 “Our research shows that the Sydney industrial market will continue to perform due to the strengthening state economy, with both the market and assets poised to benefit from ongoing significant infrastructure investment,” O’Connor says.