4 September 2019

KordaMentha Funds Management’s (KMFM) first industrial investment offering has been fully subscribed within just a few days.

Strong investor interest in industrial property fuelled the fast filling Laverton North Property Fund, which acquired Austco Polar Cold Storage (Austco Polar) facility including warehouses and office for $21 million in an off-market sale-and-leaseback transaction.

The single-property fund heralded KMFM’s entry into Melbourne’s popular industrial property sector.

A forecast initial distribution yield of 8.25% pa along with Austco Polar’s reputation as a leader in the food infrastructure and export sector proved to be very attractive to investors.

“This fund represented a rare opportunity to buy into a strong industrial location and facility with a proven track record,” says Mario Papaleo, managing director of KM Property Funds.

“Investors know how important it is to diversify their asset allocation and industrial property is in demand for its strong appreciation in land, rent and capital values.

“A healthy outlook for Australia’s import and export of goods has also instilled investors with confidence.”

The International Monetary Fund (IMF) has forecast that Australia’s volume of import will rise by 5.5% and export of goods will jump by 5.9 % between 2018 and 2023.

This bodes well for Austco Polar, which largely services food export clients. 

The Laverton North business features a high-capacity freezing plant, a storage capacity of 15,000 pallets, loading capability of 15 containers per day, and the leasing of various rooms with both managed and unmanaged services attached.

Located on a 30,313 sqm site, the facility has the capacity to provide blast freezing, storage and distribution into both domestic and international markets. 

In addition to its capabilities, Mr Papaleo says the Austco Polar Cold Storage facility is perfectly positioned in the hub of Melbourne’s western industrial precinct. 

“The facility sits on prime land located in the heart of Melbourne’s industrial west,” he says.

“Its transport links are second-to-none with the Western Ring Road, Westgate Freeway interchange and the Port of Melbourne all nearby.

“This is ideal for logistical, export-intensive businesses such as Austco Polar.”

Melbourne’s west is also set to benefit from several infrastructure projects including the West Gate Tunnel Project, which will provide a vital alternative to the West Gate Bridge, opening a second transport artery for the efficient movement of commodities and goods to the Port of Melbourne.

Laverton North Property Fund will be actively managed by KM Property Funds. It is the fifth property fund managed by KM Property Funds, bringing the total funds under management to $200 million.

Features of Laverton North Property Fund include an initial lease term of 15 years with two 10-year options. The minimum investment was $50,000.

The owner of Austco Polar, ASX listed Wingara Ag Limited, is an accumulator and marketer of agricultural products and services in international and domestic markets.
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