Baron Vanilla buys warehouses, shopping centre

The 3.34 hectare Clarkson property contains 14,004 square metres of lettable area.

Baron Vanilla Management is outlaying a speculated c$60 million for four assets earmarked for two trusts.

In the biggest deal, the manager – a joint venture between Baron Property Group and Vanilla Property Investments – has picked up the Lifestyle Zone Clarkson shopping centre, north of Perth.

McLernons occupies 188 Welshpool Road. Source: Google Street View.

On 3.24 hectares and with 14,004 square metres of lettable area and 458 car parks, the convenience retail complex at 61 Key Largo Drive is speculated to be trading for more than $45m.

BVM intends to launch its third property syndicate – the BV Lifestyle Zone Trust – to hold it; the fund is promising an eight per cent annual cash return.

Three warehouses

BVM is also spending $13.95m on three Perth industrial investments:

  • 1 Cogla Street, Malaga – a food production facility with cold storage leased to Granny’s Bakery for 10 years;
  • A showroom/office on 6113 sqm at 188 Welshpool Road, Welshpool, tenanted to office fit-out group McLernons until 2026;
  • 78 Grey St, Bassendean – which Osborne Motor Bodies is renting for four more years.

The blended Weighted Average Lease Expiry of the warehouses is 6.6 years (story continues below).

These assets will be held by a new trust, the BV Industrial Plus Fund, which aims to raise capital until the end of this financial year – and buy more real estate.

“Baron Vanilla has selected the properties due to the strong Perth industrial sector outlook and the properties’ strategic locations in established industrial precincts,” the manager’s co-director Miles Ashton said.

“By owning multiple properties in the one fund, investors will benefit from geographic and income diversification, significantly reducing the impact of a single property event such as a tenant vacating,” fellow director Joseph Rapanaro added, of the new entity, which is promising a 7.5pc annual return paid monthly.

The manager acquired a small Mosman aged care investment for $10m in July.

More to come.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.