Commercial centre sells for $16m

The Greenfields Commercial Centre is the latest acquisition for Perth-based Mair Property Funds. 

The mixed-use commercial centre in Mandurah is the second asset to be purchased under Mair Property Funds’ MPF Diversified Fund No.3. 

Located at 35 Minilya Parkway, the centre occupies a 8,801 square metre site comprising three buildings, leased to McDonald’s, Caltex and GenesisCare. 

The centre has a weighted average lease expiry of 9.1 years, with a yield of 5.67 per cent. 

CBRE director large format retail and retail services Richard Cash negotiated the sale and said the transaction underlined the shift in investment appetite to non-discretionary retail assets offering reliable returns. 

“The opportunity to purchase the Greenfields Commercial Centre attracted widespread buyer interest, with five strong offers from a national pool of buyers, including high-net worth investors, syndicators and a REIT (Real Estate Investment Trust),” Mr Cash said. 

“Buyer competition remained strong throughout the remainder of the expression of interest process, with Mair Property Funds emerging as the successful purchaser.”

He said local and national investors were continually seeking out safe-haven assets; properties that offered long WALEs, home to tenants that offered non-discretionary services. 

“With investor confidence at the forefront of buyer activity this year, we expect this area of the retail sector to remain highly sought after,” Mr Cash said.

Mair Property head of commercial funds Alex Lambert said the quality of the multinational tenants had been a key drawcard. 

“This purchase signals entry into the retail and medical sectors for MPF Diversified Fund No.3 and offers diversification to the warehouse and logistics-based assets already in the portfolio,” he said. 

Mr Lambert said the fund was targeting an annual distribution of 7.5 per cent and is in the early stages of its next acquisition: a property in Queensland.  

The group aims to create a diversified commercial portfolio of assets across Australia, with a total value between $60 million and $80 million.