Perth-based Mair Property Funds has acquired two commercial properties in Melbourne in an off-market deal worth $20.3 million.
Perth-based Mair Property Funds has acquired two commercial properties in Melbourne in an off-market deal worth $20.3 million.
The unlisted property funds manager, previously known as Mair & Co, announced yesterday it had entered into agreements to purchase a warehouse in Altona North and an industrial facility in Ravenhall, both west of Melbourne.
The Altona property is occupied by Grace Records Management with a recently agreed eight-year lease that expires in 2025, while the Ravenhall facility is tenanted by Australian Pipe and Tubing, which has a 15-year lease until 2031.
At the collective purchase price of $20.3 million, the Altona property will deliver an initial yield of 6.8 per cent and the Ravenhall facility will deliver an initial yield of 8 per cent.
Upon completion of the acquisition, the properties will be included in MPF’s diversified property trust that already holds four commercial assets in three states: retail premises in Maraoochydore (Queensland); a retail industrial property in Lynbrook (Victoria); a medical facility in Ellenbrook; and an industrial premises in Henderson (WA).
All assets in the trust are 100 per cent leased and deliver income streams offering a weighted average lease expiry of 7.2 years from 17 tenants.
MPF acquisitions manager Peter Melling said the two assets were identified for their favourable locations and strong lease agreements, which would help bolster the trust’s 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 Road,” he said.
“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.”
The two acquisitions drive the value of properties under management by MPF to $208 million.
