Barings sells bulk of Cheltenham industrial portfolio
Barings has sold the bulk of a prominent Cheltenham industrial portfolio acquired with its 2022 takeover of Altis Property Partners.
The seven neighbouring investments covering 5.5 hectares across three streets are selling for a speculated $65 million.
Troon Group with MaxCap, in their fifth joint venture, are the buyers.
Near a proposed Suburban Rail Loop station, it is a redevelopment play.
Altis bought the assets and three more across the road in 2016, part of a $90m spending spree with 14 investments, also in Brisbane and Sydney.
Also abutting each other, the remaining Cheltenham amalgamation spreads 6100 sqm.
CBRE’s David Aiello is responsible for the sell-down.
Last week we reported Barings with Rest Super paid Goodman Group $780m for 12 industrial investments.
$200m estate near Suburban Rail Loop
Troon and MaxCap’s Cheltenham holding incorporates 1, 3, 5 and 7 Brixton Road, 31-33 and 41-43 Wangara and 270-276 Bay (story continues below).
MaxCap head of Direct Investments, Simon Hullet, said with staggered leases, the Commercial 2 zoned parcel is earmarked for “higher and better use” repurpose.
Retail, childcare, warehousing and self storage were specified.
The end value should circle $200m, he added.
“[The holding] is ideally located close to the proposed Suburban Rail Loop station, major road infrastructure, Westfield Southland Shopping Centre and some of Melbourne’s most established residential suburbs like Brighton and Sandringham,” according to the executive.
“The ability to de-risk various future uses combined with the demonstratable value on the buy attracted strong investor demand,” he said.
“Leaning into the complexity of the underwriting strategy is where we have been able to unlock value”.
Also today we are reporting Troon and MaxCap won approval to replace a 10.4ha Clayton South ex-tip, acquired for $26.3m in December, 2022, with a c$200m business park containing 60,000 sqm in nine buildings.
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