Western Australia-based Mair Property Funds has bought a West Perth property and an office in Victoria, for $10.6 million and $13.9 million respectively.
Western Australia-based Mair Property Funds has bought a West Perth property and an office in Victoria, for $10.6 million and $13.9 million respectively.
The commercial property funds management company acquired both assets in off-market transactions.
The deals closed out the second of its flagship diversified property trusts MPF Diversified Fund No.2, pushing its total asset base to its target circa $60 million across eight properties.
This represents the company’s largest fund to date, taking the total funds under management across the Mair Property Funds portfolio to $280 million.
Mair Property Funds managing director David Ellwood said the diversity and quality of the new assets strengthened the fund manager’s response to growing investor demand for a diversified product.
“Our strategy in developing this fund was to target a diverse spread of high-quality assets and tenancies across different industries, locations and sectors to leverage high-performing markets while also eliminating risk exposure to a single market or sector,” he said.
“We have certainly noted a growing demand for products that offer diversity in terms of tenancy mix and industry exposure, with an increasing number of investors realising the benefits and security this strategy offers, and this has been further reinforced through the popularity of this fund.”
Mr Ellwood said the strategy had proved particularly important during the COVID-19 pandemic.
“Whilst a number of the assets in this fund were purchased during 2019, the diversity and sound commercial nature of the tenants has added good resilience during the COVID-19 pandemic, with the large majority operating as normal,” he said.
The West Perth asset, located at 1162 Hay Street with a floor size of 1,424 square metres, is currently tenanted by EBM insurance brokers.
“The existing tenant, EBM insurance brokers, selected this office accommodation based on strong underlying criteria in its specification and proximity to the city,” Mr Ellwood said.
“Having already undertaken a significant fitout in 2015 at their own cost, we see strong potential to build on these initial renovations by the tenant to further future-proof the property and enhance its long-term appeal.”
The second office property, at 6-8 Compark Circuit in the Melbourne suburb of Mulgrave, marks the fund’s first acquisition in Victoria, adding to assets in MPF Diversified Fund No.2 in WA, Queensland and South Australia.
The premises are leased by multinational medical equipment supplier, Device Technologies, which recently signed a five-year lease to tenant the ground floor of the property.
Mr Ellwood said the tenant added to the Fund’s already strong base of national, multinational and ASX-listed businesses.
“Importantly, the tenant provides the trust with exposure to an emerging office sector and growing medical equipment supply industry, which again aligns with the fund’s targeting strategy and adds greater long-term value to the portfolio,” he said.
“Overall, we are excited by the growth potential that these assets and the trust as a whole offers our investors, and are extremely pleased to close out the fund with such a strategically diverse portfolio at a strong weighted average lease expiry of 4.5 years.”
