This article is from the Australian Property Journal archive
PERTH’S Mair Property Funds has purchased a glass processing and recycling facility in Crestmead in Brisbane’s south $8 million, as the company continues to diversify its commercial fund.
Located 27km from the CBD, the 4,039sqm Crestmead facility, sitting on 15,140sqm of land, is currently occupied by the packaging and recycling company, VISY.
“VISY have invested a significant amount of money on the facility, equipping it with specialised plant and machinery, suggesting they will remain as tenants for the long-term,” said Alex Lambert, head of commercial funds at Mair Property Funds.
The facility has a WALE of 3.3 years, with Lambert adding that the funds management company could see additional value added to the property by extending the lease and expanding the facility.
The property is located in the Crestmead Industrial Estate in Brisbane’s southern corridor, which is experiencing high demand, reflected in its low vacancy rates. The Estate also has close access to transport linkages such as the Logan and Gateway Motorway Interchange.
“The large site has low coverage of only 29% and we have an approved Development Permit which allows us to subdivide the property into two lots while retaining the current warehouse and this presents a very favourable divestment option in the future,” said Simon Worth, head of capital transactions at Mair Property Funds.
This acquisition marks the fourth asset in the Perth-based company’s commercial property fund, MPF Diversified Fund No. 3, which is targeting a balanced and diversified commercial portfolio with a value in the range of $60 – $80 million.
“This new addition to the portfolio helps to further diversify the fund by both location and also industry, and it takes the asset base of the fund to just over $42 million,” added Lambert.
In February of this year, the fund acquired a retail and medical centre in Mandurah, Western Australia for $16 million.
While in the following month, an industrial warehouse and office facility, in Melbourne’s west, was added to the fund’s portfolio for $6.2 million.
Reportedly the fund is currently in the early stages of an acquisition in, also in Queensland, that would take its value to more than $52 million.
