Mair Property Funds acquires two new assets for second diversified property fund

WA-based Fund Manager, Mair Property Funds, has completed the acquisition of two industrial assets following its third raising for its second diversified property fund, MPF Diversified Property Fund No. 2.

The new assets, acquired off market for $4,700,000 and $5,200,000 respectively, include an industrial facility located in the industrial zone of Welshpool WA and a purpose-built office and logistics warehouse located at 39 Jessie Lee Street located in the Australian Marine Complex in Henderson.

The latest acquisitions broaden the asset base of MPF Diversified Property Fund No. 2, which is targeting a commercial portfolio of circa $60 million in assets, to a value of $28.4 million.

Mair Property Funds Acquisition Manager, Peter Melling, said the strategic location of the new assets played a fundamental role in MPF’s property selection.

“Being Perth’s prime industrial precinct, and given its central location between the port and Perth’s airport, Welshpool has and will continue to remain a core focus area for businesses. Similarly, we have seen rising demand in the Henderson region, driven both by WA’s recovering resources sector and the renewed growth of the defence and marine industry.”

“Given these strong underlying drivers, we are confident both assets will add to the income security of the trust and provide further diversity of location to enable us to capture growth opportunities in different markets,” he said.

Mr Melling said the strong lease covenants associated with the assets, which are tenanted by multinational marine company SINWA and international collision repairer Capital S.M.A.R.T Repairs, will help to further strengthen the fund’s existing tenancy structure.

“The fund already has a number of strong anchor tenants in its existing assets, including national retail chain Coles Group, and we have also negotiated a seven year lease term with SINWA which extends beyond the fund’s fixed term, so we are confident this will add even greater security to distribution expectations for investors,” he said.

The fund, which was established in late 2018, already holds a warehouse facility in the industrial precinct of Crestmead in Brisbane, a medical laboratory in Queensland, and a First Choice Liquor in the suburban area of Falcon, WA.

Mair Property Funds Managing Director, David Ellwood, said the company has noticed increasing demand from investors for products that offer greater levels of diversity.

“This has been one of our most popular funds to date, and we are certainly noticing a rise in demand for trusts that offer increased diversification in regards to tenancy mix, asset location and exposure to different industries and sectors.”

“Investors are realising the benefits of such funds in terms of mitigating risk and providing exposure to growth opportunities that extend beyond a single market,” he said.

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