Brisbane syndication to Kiwi investors
The land and buildings at 316 Brisbane Terrace, Goodna, Brisbane, (lower foreground) are leased to Asahi Beverages Australia Pty Ltd. Photo / Supplied
New Zealand syndicator Silverfin Capital Limited is entering the Australian property market with a syndication offer to investors based on the purchase of Asahi Beverages manufacturing facility in Queensland.
Silverfin has appointed Colliers International to market the Brisbane Terrace Partnership – a limited liability partnership that will give investors a beneficial interest in the land and buildings at 316 Brisbane Terrace, Goodna, Brisbane.
The Brisbane Terrace Partnership offer is open to retail investors until December 6 unless closed or extended at Silverfin’s discretion.
Located in Brisbane’s sought-after Western Corridor industrial precinct, the 2.32ha property is on a 10-year lease to Asahi Beverages Australia Pty Ltd, a member of Asahi Group Holdings, one of Japan’s leading beverage companies.
The company includes Schweppes Australia, Asahi Premium Beverages, Independent Liquor and The Better Drinks Co.
Asahi Group Holdings has a market capitalisation of NZD$30.8 billion, and employs more than 31,600 people worldwide across 147 subsidiaries.
Silverfin managing director Cheryl Macaulay says 133 interests of A$50,000 each are being offered to investors.
“We’re projecting a minimum pre-tax cash return of 8.65 per cent a year until June 30, 2019,” she says.
“This is an excellent opportunity to invest in a well-located industrial property with a strong tenant covenant and built-in rental growth of 3.5 per cent a year.”
Colliers’ syndications director, Charlie Oscroft, says Asahi has recently invested more than A$30 million modernising its production facilities, including a new production line, stainless steel tanking system, epoxy flooring, automatic rapid doors and an automatic rolling dock system.
“Asahi and its predecessors have been on the site for more than 25 years, and the company’s recent significant capital expenditure shows a clear long-term commitment to the property,” he says.
“The tenant still has almost seven years remaining on its lease that commenced in August 2014, after which it has two rights of renewal of between three to five years each, at the tenant’s option.”
The lease is returning A$803,419 per annum plus GST, with rental increases fixed at 3.5 per cent a year. There are rent reviews to market on renewal of the lease.
Oscroft says the property is strategically located within the popular Goodna-Redbank industrial area, 26km southwest of Brisbane CBD and 13km northeast of the satellite city of Ipswich.
“The property’s sought-after Western Corridor location has increased in desirability thanks to the recent completion of the Monash Rd overpass, which links with the Ipswich Motorway,” he says.
“The wider area is undergoing a period of high growth, with more than 9.5ha of new development at Goodman Property’s Redbank Motorway Estate, located on the site of the former Aurizon Rail workshops some 500m to the northeast.”
Oscroft says Asahi Beverages has consolidated its Queensland operations along the Western Corridor at Heathwood, Goodna and Wulkuraka; and the Goodna property is in the middle of these facilities.
Valued at A$10 million, the property has a net lettable area of 8524sq m on a 23,200sq m freehold site.
“This outstanding industrial facility is well suited for manufacturing and warehousing uses,” Oscroft says.
“Originally constructed about 1990, the complex was extended at various times during the mid-to-late-1990s. Further work was carried out this year on the loading transit extension on the western side of the building.”
Oscroft says the main building is partitioned into a 1607sq m warehouse and a 5672sq m production and storage facility.
“The highly functional warehouse space comprises low bay, columned accommodation with a clearance of 6.1m to 6.3m,” he says.
“All-weather dispatch and delivery is via an expansive 947sq m covered awning.”
Some A$1.5 million of recent vendor improvements have included a new roof and refurbished offices, footpaths and landscaping.
Oscroft says the building covers only about 41 per cent of its site.
“External areas include a large concrete-paved yard, with one-way truck access via dedicated dual driveways.
“A separate driveway for staff and visitor vehicles provides access to on-site parking for 87 cars.”
The Brisbane Terrace Partnership is to be managed by Silverfin, which is licensed under the Financial Markets Conduct Act 2013 to manage managed investment schemes (excluding managed funds) that invest in real property or property syndicates/real property proportionate ownership schemes.
While a relatively new entrant to the marketplace, commencing operations in 2016, Silverfin already has more than $160m of commercial property assets under management.
Macaulay has 17 years of commercial property and syndication experience, which has included previous syndications of Australian properties.
She owned and managed the syndicator Commercial Investment Properties, which merged with KCL Property to create the largest syndication portfolio in New Zealand at the time.
KCL managed some $850m of property when it was subsequently acquired by listed company, Augusta Capital, in 2014.
Macaulay says Silverfin’s schemes are structured to provide investors with a cash return from commercial and industrial real estate, without the burdens of private property ownership.