Desane investment property income increases by 13 percent
Desane Properties Pty Ltd, a controlled entity of Sydney based Desane Group Holdings Limited (ASX: DGH) (“Desane”, “Group” or “Company”) is pleased to advise that it has strengthened the income and tenure of its 5,000m2 Lane Cove investment property portfolio.
Desane has signed a new five‐year lease with its existing tenant, engineering products and solutions company, Halley & Mellows. The five‐year lease for the 1,072m2 office and warehouse, was struck at $210 net per square metre. The new five‐year lease, together with the 1,100m2 existing lease to Lizard Children’s Centre has resulted in a 13% increase in net rental income per annum for the 13 Sirius Road, Lane Cove property. Together with the 2,800m2 office and medical manufacturing facility leased to Signature Orthopaedics at 7 Sirius Road, the Lane Cove investment properties are expected to contribute over $4.6m of net rental income to Group revenues, delivering a 17.5% increase over the next five years.
With the current strong balance sheet and low gearing, Desane’s management is actively engaged in the acquisition of additional investment properties, which should result in further strengthening of the Group’s revenues.