Real estate fund manager Irongate Group has broadened its industrial and logistics portfolio with the acquisition of a manufacturing facility in Glendenning, New South Wales. The property, located at 182 Power Street, comprises two warehouses leased to Wire Industries, a prominent Australian steel manufacturer, with four years remaining on the lease. This acquisition marks the sixth for Irongate in just nine months, reflecting the company’s active investment strategy in the Australian industrial sector.
With this latest purchase valued at $39 million, the total value of Irongate’s industrial platform has now surpassed $400 million. The company’s total assets under management (AUM) have reached nearly $1.3 billion, with a projected on-completion valuation of approximately $3.75 billion. The Glendenning site features a net lettable area of 11,189 square meters on a site of 20,058 square meters.
Strategic Focus on Industrial Assets
Irongate’s approach to acquisitions emphasizes strategically located warehouses that can be obtained below replacement costs. The Glendenning asset fits this criteria, being situated in one of Sydney’s prime industrial suburbs. The property also boasts access to high power supply, which is increasingly scarce in the region.
Graeme Katz, CEO of Irongate, expressed confidence in the company’s ongoing ability to invest in this desirable asset class. “We have been active in this market for twenty years and benefit from a strong team who is well connected on-the-ground,” Katz stated. He noted that Irongate has maintained strong support from leading global real estate investors, contributing to its successful growth trajectory.
Katz emphasized the importance of their partnership with Burstone Group, which has a significant stake in Irongate. “We don’t take this support lightly and remain focused on continuing to service our partners,” he added.
Commitment to the Australian Market
The acquisition of the Glendenning property was facilitated by Matthew Flynn and Paul McGlynn from Colliers, further illustrating the robust nature of the industrial real estate market in Australia. Andrew Wooler, CEO of Burstone Group, reaffirmed his commitment to the Australian market, stating, “The Irongate business has continued to perform ahead of expectations, maintaining strong relationships with its core investor base while actively engaging with new capital partners.”
As Irongate continues its expansion, the company’s focus remains on leveraging its expertise in asset management to maximize the value of its investments. The Australian industrial sector is benefiting from its reputation for stability, making it an attractive landscape for both domestic and international investors.
With a well-established history and a forward-looking strategy, Irongate Group is poised to remain a key player in the industrial real estate market, navigating the complexities of the sector while delivering value to its stakeholders.
