The property is being acquired on a fund-through basis with completion expected to occur in October 2020 following satisfaction of certain conditions. The development is being undertaken by Felton Property Group, an experienced industrial developer based in Queensland.

The property is 23 kilometres north of the Brisbane CBD in an established industrial precinct and will be 100% occupied by 4WD Supacentre on a 6 year lease once construction has completed in June 2021. The net passing rent is $105/m² with annual rental escalations of 2.75%.

Commenting on the acquisition, IAP CEO Graeme Katz said:

“The acquisition aligns with the Fund’s strategy of investing in well-located, high quality assets that provide a sustainable income stream for investors. The property is a 9,300m² generic warehouse and distribution facility that will be constructed to a high specification, with 10,852m² of hardstand and 95 on-site car parks.

“Industrial property has proven to be relatively resilient despite the current health and economic challenges, and the acquisition increases the Fund’s industrial exposure to 31% by both income and value”, Katz added.

The acquisition is accretive for the Fund and will be funded by utilising the Fund’s existing debt facility.