- Represent the second asset for MPF Diverisifeid Fund No3
- 8,801sqm site features strong multinational and medical tenants
- The MPF fund is seeking its next acquisition in Queensland
Mair Property Funds, a Perth-based commercial funds management company, has acquired Greenfields Commercial Centre in Mandurah, just south of Perth, for $16 million.
The sale represents the second asset for its MPF Divierisifed Fund No.3.
35 Minilya Parkway is an 8,801sqm site that features three buildings leased by three strong tenants: McDonalds, Caltex and GenesisCare.
Richard Cash of CBRE, who negotiated the sale, says this further emphasises the demand for non-discretionary retail assets.
“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,” said Mr Cash.
“Buyer competition remained strong throughout the remainder of the EOI process, with Mair Property Funds emerging as the successful purchaser.”
Richard Cash also recently negotiated the sale of a Midwest shopping centre for over $10 million.
The Head of Commerical Funds at Mair Property Funds, Alex Lambert, said the Fund is excited about the newest addition to their portfolio, which har an annual distribution target 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,” said Mr Lambert.
Mr Lambert also remarked the high-quality multinational tenants was a deciding factor in the acquisition, as well as the GenesisCare facility.
The facility, which provides specialist medical services and treatments that are unique to the local area which has an ageing population, makes the acquisition even more attractive for the Fund.
On top of this the weighted average lease expiry – known simply as WALE – is 9.1 years, which is relatively strong.
Mr Cash says he expects more investor activity in this sector going 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,” said Mr Cash
“With investor confidence at the forefront of buyer activity this year, we expect this area of the retail sector to remain highly sought after.”
MPF’s Diversified Fund No.3 aims to have a well-balanced and diversified portfolio with a total value of $60-$80 million. It is likely to hit $40 million soon with the Fund currently in early stages of their next undisclosed acquisition in Queensland.