Investment Summary
Investment Type:
Developed Self-Storage & Industrial Asset
Location:
Homebush West, NSW
Sector:
Industrial and Self-Storage
Acquisition:
October 2022
Disposal:
October 2024 (Partial - Storage)
Investment Overview
- Burtonwood secured an off-market co-investment opportunity to acquire an interest in the newly completed “Homebush Logistics Centre” located at 201 Parramatta Road, Homebush West, NSW, approximately 14km west of Sydney’s CBD.
- The property is located on 2.56ha of land, directly adjacent to the M4 and Parramatta Road, which are major arterial roads in Sydney.
- The property is improved with a 5,729sqm multi-level self-storage facility, with Wilson Storage operating the property and a 10,482sqm industrial warehouse facility with eight (8) institutional-grade tenancies.
- Burtonwood acquired its interest from the developer(s), Trumen Corp and Norman Property Partners, who specialise in Industrial and Self-Storage development projects throughout Sydney. Both developers hold a majority equity interest in the self-storage asset alongside Burtonwood.
- The fund acquired its interest at practical completion of the development works with no construction or delivery risk. However, as self-storage is an operating asset class (akin to a hotel), there is a trade-up period, which afforded Burtonwood with an opportunity to generate a higher (core-plus) style return.
- Sale and settlement of the self-storage facility occurred in October 2024, at a considerable premium and earlier than contemplated in the business plan. The Trust retains ownership of the industrial logistics complex, which comprises 65% of the aggregate lettable area. The sale of the self-storage facility at an attractive value earlier than contemplated in the business plan positions the fund favourably to potentially outperform the Projected Investor IRR.
