This article is from the Australian Property Journal archive
PERTH-based Mair Property Funds has snapped up two commercial properties in Melbourne off-market for $20.3 million.
The properties are located in Ravenhall and Altona North in Melbourne’s west.
Located in the Orbis Business Park, 22km west of Melbourne CBD, the Ravenhall facility was constructed in 2010 and comprises a 6,888 sqm building, occupied by Australian Pipe and Tubing with a 15-year lease until 2031, set on a land area of 13,930 sqm.
Built in 2008, the Altona North property comprises a 10,056 sqm warehouse, occupied by Grace Records Management with a recently agreed eight-year lease that expires in 2025, set on a land area of 18,410 sqm.
MPF acquisitions manager Peter Melling said the assets were identified for their favourable locations and strong lease agreements, which would help bolster the trusts revenue security and income diversity.
“Altona is becoming an increasingly important logistics hub due to its proximity to the Melbourne Port and access to the Princess Freeway and Western Ring Rd. “Similarly, Ravenhall is a rapidly growing suburb part of the West Growth Corridor Plan, where the population is expected to increase from 210,000 in 2016 to 377,000 people.
“Both properties also offer strong lease covenants with reliable tenants providing investors with a steady income stream,” Melling said.
Upon completion of the acquisition, the properties will be held in MPF’s Diversified Property Trust, boosting the portfolio to six properties in three states, including a retail premise in Maraoochydore (Queensland), a medical facility in Ellenbrook (Western Australia), an industrial premise in Henderson (Western Australia) and a retail industrial premise in Lynbrook (Victoria).
All assets in the trust are 100% leased and provide strong income streams offering a weighted average lease expiry (WALE) of 7.2 years from 17 tenants.
Australian Property Journal
