Brookfield to pay Goodman $203.5m for Prestons logistics centre

The report places the purchase in the context of Brookfield reshaping its Australian property holdings. It notes that in July Brookfield agreed to sell half of the World Square office buildings in Sydney to Centuria Capital for $454 million.

The same article points to other recent Sydney commercial property transactions, including Charter Hall buying a 50 per cent interest in the O’Connell Street office precinct from the Abu Dhabi Investment Authority for more than $500 million, and Dexus selling a three-building office portfolio for $715 million in July. For a related industrial deal this week, see JD.com’s $70m Brisbane industrial site.

The numbers

The Urban Developer reports the following figures for the Prestons deal and the site’s history:

• Brookfield will pay Goodman $203.5 million.
• Goodman bought the first part of the site in 2005, paying $24.8 million at the time.
• Mainfreight committed to the original facility in 2007, when it covered 20,510sq m across two warehouses, and the outlet says later expansions increased the scale of the operation.

Set against the current 45,780sq m, the 2007 figure of 20,510sq m means the facility now covers about 2.2 times the original floor area, by our calculation from the outlet’s two numbers.

The article does not give a yield, a valuation, the name of a Brookfield fund or the name of a sales agent.

What’s next

Settlement is expected later this month, according to The Urban Developer. The outlet reports that Goodman later expanded the site around Mainfreight’s operations.

The outlet does not say what Brookfield plans for the property beyond the purchase, and it does not give a return figure that would show how the price compares with the rent from the Mainfreight lease. Readers should treat the $203.5 million as the reported price until settlement is confirmed.

This story is based on the outlet’s report. The Australian Developer has not seen the contract of sale and has not independently confirmed the terms.