WeSellRealEstate.com.au - February 10, 2006
A rush of bids are expected today for the $860 million Woolworths industrial portfolio of distribution centres. Record low yields are expected as a condition of sale specifies that the winning bidder will be the one who offers the lowest rent, not the highest purchase price.
Yields for prime industrial assets in the best performing markets in Australia range from 7% to 7.25%, but the Woolworths sale is expected to establish a new benchmark in the 6% range. Woolworths will leaseback the 11 properties for 15 years. However only 6 properties have freehold titles. One of the distribution centres in the sale include the new Barnawartha site located at Logic.
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Saturday, February 11, 2006
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