Propertylink adds to its portfolio

Propertylink adds to its portfolioIn a deal that spans the office and industrial property sectors, Propertylink has acquired Sydney’s 320 Pitt Street office tower for $200 million and eight industrial assets for $103.3 million.The Australian real estate and infrastructure fund manager currently has more than $2 billion in assets under management and more than $700 million of assets acquired throughout 2014.The purchase of 320 Pitt Street is Propertylink’s largest office acquisition to date. The office tower has a net lettable area of 30,000 sqm and is 100 per cent leased to Telstra for five years. The purchase reflects an initial yield of 8.26 per cent and was brokered by Rob Sewell and Paul Noonan of JLL.The eight industrial properties included in the combined transaction are located in Sydney, Brisbane, Melbourne and Perth with a weighted average lease expiry (WALE) of approximately 3.3 years. The purchase reflects a passing yield of 10 per cent and was brokered by Michael Fenton of JLL.Goldman Sachs and Grosvenor Group are co-investors in both elements of the transaction.Peter McDonald, Executive Director and Head of Property at Propertylink says the latest acquisition provides the company with “an enormous opportunity to apply Propertylink’s active management approach to drive the value in these assets. Propertylink has created a niche in the market by unlocking value in these types of assets.”In the coming weeks we will see a number of prime asset deals announced that will be at historical low yields and which will re-rate the industrial sector,” McDonald adds.Propertylink also recently acquired value-add commercial properties at 73 Miller Street in North Sydney (in partnership with China’s Fosun Property) for $116 million and 15 Talavera Road in Macquarie Park.