AMP Capital Diversified Property Fund (ADPF) has acquired a portfolio of Sydney industrial assets for $250 million.
The portfolio comprises six high quality, Sydney based warehouse/logistics assets, located in a mix of core and infill locations with future urbanisation potential and proximity to existing and proposed infrastructure. All assets are located within land constrained markets, supporting future rental and capital growth prospects.
Benefiting from a strong tenancy profile, further enhancing ADPF’s industrial tenant mix, the portfolio provides investors with a strong income stream and extends the overall weighted unexpired lease term of the fund, supporting continued attractive distributions.
ADPF Fund Manager Kylie O’Connor said the acquisition was consistent with the fund 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,” Ms O’Connor said.
“I am very pleased that we have been able to secure this high quality industrial portfolio off market on attractive terms for our investors. Over the next five years, the fund remains focused on executing upon its strategy to become the pre-eminent wholesale diversified fund in the Australian market and this portfolio will enhance our ability to continue to provide attractive long term risk adjusted returns to our investors.”
The fund’s increased investment in industrial property comes as AMP Capital continues to build its industrial capabilities with the recent appointment of Andrew Quade as Head of Industrial, Asset Management.