The 360 Capital Industrial Fund (TIX) has sold a Sydney warehouse above book value to an owner-occupier, following a buyout of its manager, the Tony Pitt-led 360 Capital Group real estate platform, by Centuria.
TIX, with a market value of more than $500 million, sold the A-grade industrial facility at 60 Marple Avenue, Villawood in Sydney west for $20 million. This was at an 8.1 per cent premium to its June book value of $18.5 million.
Leased to Kent Transport until February, the property comprises 8615 square metres of office and warehouse improvements and is close to the Leightonfield train station and Villawood Intermodal.
Tim Armstrong and Ryan Carey from Knight Frank and Shaun Timbrell and Michael O'Neill from CBRE were the marketing agents.
"The fund received an unsolicited offer to acquire the property by an owner-occupier. Given the pending expiry of major tenant Kent Transport in February 2017 and the age and style of the improvements, the fund has elected to dispose of the asset in line with its deleveraging strategy," TIX said.
Net proceeds will be used to retire debt with gearing reducing to 41.3 per cent after settlement. This is due to occur on February 17, enabling the fund to receive rental income until the expiry of the Kent Transport lease.
The sale comes just days before the trading of new Centuria securities - part of a $150 million equity raising to find the acquisition of 360 Capital Group - is due to commence on January 9.
Centuria Capital acquired the 360 Capital Group's real estate funds management platform on November 23 in a $290 million deal, which included spending $115.8 million to buy out stakes in two listed 360 Capital-managed funds, an office fund and the industrial fund.
Last week, Centuria announced it had completed a $150 million equity raising to fund the acquisition, fully underwritten by Moelis Australia, with institutional investors allocating $99.1 million.
The institutional component of the entitlement offer and the Placement and the Conditional Placement were completed on November 24, and raised approximately $99.1 million at the issue price of $1.00 per new security. The retail offer raised $7.5 million from eligible securityholders.
