Mair Property Funds has spent $12.41 million on a distribution centre leased to Timberlink for its new MPF Diversified Trust No 3.
The vendor, Sentinel Property Group, paid $10.1m for 13 Modal Crescent, Canning Vale, in December, 2017, for its Sentinel Industrial Trust.
The 1.9 hectare holding includes a 5477 square metre fully sprinklered warehouse and modern office built out of cross laminated timber for the occupier in 2007.
It is designed with full drive around access, a 2296 sqm awning and 62 car parks.
Timberlink, a subsidiary of New Forests and key Bunnings supplier, recently renewed its tenancy for 11 years.
Transact Capital Alex Gismodi represented Sentinel.
Canning Vale is about 15 kilometres south east of Perth. Last July MPF sold a service station at 488 Ranford Road, there, for $5.75m.
The Modal Cr property will seed the MPF Diversified Fund No 3 – which aims to hold between five and eight assets worth a total of between $60-$80m (story continues below).
Asset earmarked for new MPF Diversified Fund No 3
MPF is capital raising for the MPF Diversified Fund No 3 now; the minimum investment is $50,000 and it is targeting distribution of 7.5pc.
“The area is very well located on the main freight route between Fremantle Port and Perth Airport, and is strategically located on the main state freight route being Roe Highway,” the company said of its latest buy.
“More specifically, [it] is located on the south side of Modal Cr, which allows heavy vehicles access up to RAV-4 vehicles”.
The Canning Vale acquisition comes six months after MPF spent $24.5m on suburban Melbourne and Perth offices, and almost a year since it outlaid $27.6m on assets, including in Adelaide – for MPF Diversified Fund No 2.
That fully subscribed trust, holding eight properties and targeting a 7.5pc distribution, shares key similarities to the proposed MPF Diversified Fund No 3 – except the latter will consider investing in more than four states.
The 15 year old Mair controls properties worth a total of c$280m. That portfolio has a 96pc occupancy rate.