A worker makes an inventory of crates containing Playmobil figures at the Playmobil Malta factory in the Hal Far Industrial Estate outside Valletta April 11, 2014.
A worker makes an inventory of crates containing Playmobil figures at the Playmobil Malta factory in the Hal Far Industrial Estate outside Valletta April 11, 2014. Reuters/Darrin Zammit Lupi

Investec Australia Property Fund has announced the takeover of AU$26.0 million worth of industrial property in Perth, which takes the value of the Fund’s total portfolio to AU$405.5 million.

Located at 54 Miguel Road, Bibra Lake, the industrial area is 21km south of the Perth CBD. Spread in 40,824 square metres, the site is in close proximity to the Kwinana Freeway and Port of Fremantle.

Bibra Lake is one of the premier southern industrial precincts of Perth. The property has 21,956 square metres of warehouse space and 402 square metres of office space, according to a press release. It has been leased to CTI Freight Systems Pty Ltd - a wholly-owned subsidiary of ASX-listed CTI Logistics Limited.

Leading property fund

IAPF is an Australian domiciled fund listed on the Johannesburg Stock Exchange. It invests in office, industrial and retail properties of Australia and is managed by experts in entrepreneurial property. Managing third party property funds with its geographically and sectorally diversified portfolio comprising quality tenants and good rental income, the fund also provides South African investors direct access to the Australia’s commercial and industrial property market, noted a report in e-prop.co.za.

“The acquisition represents an opportunity to gain entry to the WA market without direct exposure to the resources sector. The property is used by the tenant as a distribution warehouse servicing a number of underlying customers in the document storage, food, beverage and agricultural industries,” said Graeme Katz, CEO, Investec Australia Property Fund.

The CEO said the property offers great promise. Its neighbouring tenants include Bidvest Logistics, Sims Metals and Masters. The expected initial yield on acquisition is 7.94 percent of pre-transaction costs. The lease also provides for annual rental increases by three percent. The debt-funded transaction takes the Fund’s gearing to 37 percent.

Premier industrial area

The CEO said the property is attractive as the location is close to strategic infrastructure including the Port of Freemantle and main highways. The flexible layout also allows accommodating multiple users in the future.

“The Fund has now acquired nine properties with a combined value of AU$211.0 million since the rights issue late last year, and demonstrates our ability to source well-located assets underpinned by long-term leases in a competitive market,” Katz added.

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