WA-based commercial funds management company, Mair Property Funds, has secured the first asset for their recently launched MPF Diversified Fund No.3, acquiring an industrial logistics and distribution facility in Canning Vale (Western Australia).
The 7,773 sqm industrial facility was secured by the fund managers off-market for $12.4 million and represents the first addition to the asset base of the fund which is targeting the acquisition of up to $80 million worth of assets across Australia.
The fund builds on the earlier success of MPF Diversified Funds No.1 & No.2, with MPF Diversified Fund No.2 having recently closed out at $60 million with the final two asset purchases completed in May.
Alex Lambert, Head of Commercial Funds at Mair Property Funds, said the company is continuing to notice growing investor appetite for diversified products.
“Investors are beginning to recognise the benefits of spreading capital across different markets and sectors to reduce their investment risk and leverage broader capital growth opportunities, and the successes of MPF Diversified Funds No.1 & No.2 highlights this demand.”
Mr Lambert said the purchase, which is purpose-designed and tenanted by major Australian wholesaler, Timberlink, represents an excellent initial asset for the fund.
“The asset is secured by an 11-year lease with Timberlink, who are a key supplier to Bunnings, so we’re confident this asset will provide strong long-term income security to our investors.”
“In addition, the continued growth in e-commerce retail is providing a significant tailwind and we have identified burgeoning demand for high-quality industrial properties, particularly well-located distribution facilities such as this that meet the demands of modern tenants in terms of fit-out and design,” Mr Lambert said.
Located in Canning Vale, one of Perth’s premier industrial areas, the facility is strategically positioned close to the main freight route of Roe Highway, allowing easy access to ports, Perth Airport and other main transport routes.
Mr Lambert said the fund, which is targeting annual distributions of 7.5% per annum, received strong interest from investors during the opening raise.
“Our priority from here is to build on from this initial success and target a well-balanced and diversified commercial property portfolio,” he said.