Wetherill Park sold
Lester Group continues to take advantage of the strong Sydney market, selling its industrial property at 159 Newton Road, Wetherill Park, for $24.4 million. Wetherill Park achieved almost $9 million in capital gain as well as rental income to its investors, over the four-year investment. The syndicate paid $15.5 million for the property in late 2015 and preliminary calculations show investors will receive an Internal Rate of Return (IRR) in excess of 18% per annum.
159 Newton Road, Wetherill Park, Sydney, consists of 12,655 sqm of office and warehouse on a two-hectare site, with excellent access to the M4 and M7 motorways. It is leased to Austcor, a leading manufacturer of corrugated cardboard packaging with a further 4.4 year lease term remaining. The
property attracted extensive interest from institutional and private investors.
Lester Group Director, Russell Lester, said this property was part of their 2015 Diversified Property Fund which also held a similar industrial property at 20 Williamson Road, Ingleburn, NSW. This property was sold last year for a $10.26 million profit.
“We are delighted with this result,” Mr Lester said. “This will close out this fund and deliver solid profits to our investors. Over the life of this syndicate, an investment of $500,000 has returned more than $900,000 in quarterly income and capital profit”.
Lester Group was the largest investor in its own syndicate that held the two assets.
“We continue to actively look at assets Australia wide [but] WA appears to be offering the most compelling opportunities”. Mr Lester said the Lester Group particularly like the local industrial and large format retail markets, but carefully monitor other sectors as well as markets in Australia’s eastern states.
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