Mair Property Funds is picking up two more investments for its near-new MPF Diversified Fund No 3.
The acquisitions come two months since the manager spent $16 million on a mixed-use convenience investment in Greenfields, near Mandurah.
The trust’s seed asset – a logistics centre in Perth’s Canning Vale, cost $12.4m from Sentinel last October.
MPF Diversified Fund No 3 aims to hold stock worth a total $60-$80m.
It also intends to own large format retail.
MPF’s latest assets at Crestmead and Derrimut
Mair’s two new assets are industrial.
In Brisbane’s Crestmead, a glass and recycling facility (pictured, top) on 1.5 hectares leased to Visy (formerly Owens-Illinois) is speculated to be costing more than $8m; it has yet to settle.
The asset was once held by Centennial’s Industrial & Logistics Fund II – another mid-size trust.
The Weighted Average Lease Expiry is 3.3 years (story continues below).
Mair said it is picking up 28-34 Magnesium Drive below replacement cost.
The land carries an Environment Authority Permit, which it believes increases the chances of the tenant renewing.
The 4039 sqm office/warehouse covers 29pc of the block.
A market rent review is scheduled for May.
Visy processes about 150,000 tonnes of recycled glass at Crestmead, 24 kilometres south of Brisbane.
“The property is also being sold with an approved Development Permit to subdivide the existing land into two lots and retain the existing warehouse,” Mair added.
Meanwhile in Melbourne, the manager is paying $6.2m for 110 Castro Way in Derrimut’s Paramount Industrial Estate.
This seven year old facility on 1.06 ha contains a 2860 sqm warehouse which Goodwin Freight Services recently committed to until 2028.
Based on the net passing rent ($342,000), the price reflects a 5.4pc yield.