MaxCap Industrial Opportunity Fund – a partnership formed nine months ago between Time & Place and MaxCap, the latter in which former prime minister Paul Keating was until recently a shareholder and co-director, has acquired its third asset.
The 13.6 hectare factory at 385-397 Francis Street, Brooklyn, in Melbourne’s west, is costing $65 million.
The vendor was logistics and infrastructure group Qube Holdings.
MaxCap IOF to create a business park out of the ‘gateway’ Brooklyn block
MaxCap IOF intends to create a business park at Brooklyn, subdividing lots which will be targeted to small and medium sized industrial developers, investors and owner occupiers.
Near the busy Princes Highway/Millers Road intersection and close to West Gate Freeway, the “gateway site” as it was promoted, is a few hundred metres from the Yarraville suburb border and high-profile ex-Bradmill factory which is earmarked for housing.
Brooklyn is about nine kilometres from the Melbourne CBD.
Chris O’Keefe, who co-established Time and Place Commercial (an entity of Time and Place) in 2016, said the site “is a great example of an outstanding investment opportunity that was secured off-market through the agility of the Fund and the ability to work with the vendor to meet their needs and timing”.
The executive added MaxCap IOF is investigating more acquisitions in 2020.
MaxGap Group director Simon Hulett said the fund “has been very well received by a range of private and institutional investors due to the basic supply and demand fundamentals that underpin investment strategy and the strong return pipeline in a low yielding environment.
Late last year Mr O’Keefe and Mr Hulett said the venture aims to have funds under management worth about $150 million by the end of the year.
MaxCap Industrial Opportunity Fund
MaxCap IOF was established to acquire and develop logistics-related stock.
The four-year closed ended vehicle (with a one year renewal option) aims to return investors more than 20 per cent net annually, following fees.
The fund is also prepared to invest in Sydney and Brisbane.
All up, MaxCap IOF is expected to own between six and eight properties.
In 2017, Mr Keating took a financial stake and board position at MaxCap, however, since 2018, the 76 year old has had no formal relationship with the business.
Time and Place building its own industrial development pipeline in Melbourne’s west
Other Melbourne industrial development sites controlled by Time and Place include a c15 hectare Williamstown North holding acquired from Mobil Refining Australia about two years ago, which has since made way for a land subdivision targeted to small and medium sized investors and occupiers.
In 2018, Time and Place picked up a 21.5 hectare industrial zoned parcel at 16-36 Doherty’s Road, Laverton North – now making way for a 20-lot land subdivision, The Junction.