Perth-based commercial funds management company, Mair Property Funds, has acquired a second asset for its MPF Diversified Fund No. 3, a mixed commercial centre in Mandurah for $16 million.
Located at 35 Minilya Parkway, the Greenfields Commercial Centre sits on a 8,801sqm site and features three buildings that are currently leased to strong multinational retail and medical tenants, McDonald’s, Caltex and GenesisCare.
CBRE’s Richard Cash, who negotiated the sale, said the transaction underlined the continued shift in investment appetite to non-discretionary retail assets that offer 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. Buyer competition remained strong throughout the remainder of the EOI process, with Mair Property Funds emerging as the successful purchaser.”
Alex Lambert, Head of Commercial Funds at Mair Property Funds, commented on the exciting move to add a diversified asset to their portfolio, which is targeting annual distributions of 7.5%:
“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.”
Mr Lambert said the quality of the multinational tenants was a key factor in the strategic acquisition.
“The GenesisCare facility completed at the end of 2019 provides specialist medical services and treatment unique within the local area, and the quality tenants are secured by a strong WALE of 9.1 years.”
Mr Cash echoed these sentiments and expects increased investor activity within this sector moving forward.
“Investors – both local and national - will continue to seek out ‘safe haven assets’ that offer long WALES and a high exposure to non-discretionary services given their relative security and performance. With investor confidence at the forefront of buyer activity this year, we expect this area of the retail sector to remain highly sought after,” he said.
MPF Diversified Fund No.3 is looking to build upon the success of the popular MPF Diversified Fund No.2, with the fund targeting a well-balanced, diversified commercial property portfolio with a total value between $60 – $80 million across Australia.
The Fund is currently in early stages of its next acquisition in Queensland, which will take its asset base to a total value of over $40 million.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.