KordaMentha Funds Management is acquiring the cold storage facility from Austco Polar Cold Storage Pty Ltd in a $21 million off-market sale-and-leaseback transaction that offers a forecast initial distribution yield of 8.25% pa.
- KordaMentha Funds Management acquires cold storage facility at Laverton North for $21 million in sale-and-leaseback transaction.
- Rare opportunity for investors to enter thriving industrial property sector.
- Fund property located in highly strategic and sought-after location in Melbourne's west.
KordaMentha Funds Management (KMFM) is pleased to announce its entry into Melbourne's highly sought after industrial property sector in Melbourne's Laverton North, with a new single-property fund for wholesale investors.
KMFM is acquiring the cold storage facility from Austco Polar Cold Storage Pty Ltd in a $21 million off-market sale-and-leaseback transaction that offers a forecast initial distribution yield of 8.25% pa.
KM Property Funds (KMPF) will actively manage the investment for investors, with Laverton North Property Fund due to open for investment from this month (August).
"There is a lot of opportunity in the Australian industrial market, with Melbourne's west, in particular, increasingly in high demand by institutional investors," says managing director of KM Property Funds, Mario Papaleo.
"We are pleased to be able to offer a rare chance for investors to invest into this robust sector of the property market and, most importantly, have their investment actively managed by experienced investment professionals."
The Laverton North site is approximately 30,315 square metres in size, and is made up of several warehouse buildings for cold storage, as well as a main two-storey office building. Austco Polar Cold Storage offers container, leasing, blast freezing and high-capacity container loading services for its largely food export clients.
The site is strategically located close to the Western Ring Road, Westgate Freeway interchange and the Port of Melbourne, making it prime land for logistical, export-intensive businesses such as Austco Polar.
The Laverton North purchase marks the fifth property fund launched by KM Property Funds, bringing the total funds under management to $200 million.
Most recently, KM Property Funds launched Cambridge Bedford Property Fund, consisting of two commercial offices in Adelaide and Hobart, projecting income returns of 8.5% per annum.
Other closed funds include 333 Exhibition Street Fund, which is wholly tenanted by the University of Melbourne; The Stables Property Fund, which is anchored by a number of tier-one retailers and medical service providers; and NewActon East Property Fund, which is the commercial component of award-winning NewActon East development and the headquarters of the Australian Competition and Consumer Commission (ACCC).
Industrial property has become a sought-after investment sector for institutional investors. According to a recent JLL Research report, titled Australian Industrial Investment, approximately $3.2 billion in investment sales occurred across the national industrial sector in 2018.
Mr Papaleo said high levels of investment in local infrastructure — including the West Gate Tunnel Project, which is currently under construction — will further increase logistical efficiencies, making Melbourne's western industrial precinct an even more important hub for business.
"The Victorian Government's infrastructure spend, combined with Austco's strong food orientated export business, and the high demand for industrial land in Laverton North, make this fund an ideal investment for investors," Mr Papaleo said.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.