- Investec Australia Property Fund (IAP) has purchased a property in Brendale, Queensland, which it will turn into an industrial facility
- The land and development agreements are worth over $15.6 million
- Investec has signed an agreement for Felton Property Group to be the developer of the industrial facility
- The property will be leased to 4WD Supacentre for six years
- On market close, Investec Australia is up a slight 0.43 per cent and is trading for $1.18
Investec Australia Property Fund (IAP) has purchased a property in Brendale, Queensland for over $15.6 million.
The purchase is being made on a fund-through basis. Investec has signed a nomination agreement with Felton Property Group. Under this agreement, Felton has nominated Investec to undertake a call option to purchase the property from the current owner, Alberton Holdings Qld.
The company plans to build an industrial facility on the property.
Investec has also signed a development agreement with Felton, where Felton will be responsible for the development of the property on behalf of the fund.
The total consideration includes an initial payment of nearly $4 million to Alberton, while the remaining funds will be paid progressively to Felton, under the developer agreement.
The property will be leased to 4WD Supacentre for six years at $105 per square metre
“Once completed, the Property will be a high quality 9,300 squared metres generic warehouse and distribution facility with 10,852 squared metres of hardstand and 95 on-site car parks which will suit multiple users,” IAP CEO Graeme Katz said.
“The property is leased to 4WD Supacentre for a term of 6 years at $105/m², with
annual fixed escalations of 2.75 per cent. It is being acquired on an attractive initial yield and increases the Fund’s exposure to the industrial property to 31 per cent by both income and value,” he added.
The settlement is expected to occur in October 2020.
On market close, Investec Australia is up 0.43 per cent and is trading for $1.18 each.