Stele snares Yatala site

LISTED real estate investment trust Growthpoint Properties Australia has offloaded two Yatala properties for $15.45 million.

The 29 Business St and 10 Gassman Drive sites were part of a portfolio acquired in 2011 from developer Property Solutions in a $171.5 million deal.

The 1.64ha 29 Business St property, home to a 8680sq m office/warehouse distribution facility, was sold to Stele Pty Ltd, associated with Civic Showerscreens and Wardrobes owner Lance Styles, for $10.65 million in March.

Stele acquired the property after selling 360 Brisbane Rd, Arundel, for $4.1 million earlier this year.

Mr Styles said the premises was purchased to bring Civic’s three sites, at 360 Brisbane Rd, 93 Burnside Rd, Yatala, and another in Stapylton, together in one place.

CMC Steel Distribution had occupied the 29 Business St premises until March.

Mr Styles said he hoped to have all staff moved to the new premises by Christmas but needed the council to approve a material change of use first.

Mr Styles established Civic, which manufactures showerscreens, wardrobes, splashbacks and mirrors, in 2008.

He previously owned Regency Wardrobes, Showerscreens, Mirrors and Splashbacks, which he sold to Jeld-Wen 15 years ago.

The 29 Business St property was marketed by Cushman & Wakefield’s Scott Dalton and Michael Callow and CBRE’s David Corke and Luke Brechin.

Mr Corke said the deal showed owner-occupiers were continuing to take advantage of the low-interest rate environment to purchase properties.

Growthpoint, which is majority-owned by South African interests, said in an ASX statement that the sale of 29 Business St was part of an effort to reduce debt and to rebalance its portfolio towards the office sector in NSW.

The REIT generated a $278.1 million profit in FY17, 26.8 per cent up on the prior year.

The 6480sq m 10 Gassman Drive property, marketed by Mr Corke and Mr Brechin, sold for $4.8 million and hosts 3188sq m of office/warehouse space.