Key Information on the Fund
- Strategically located asset
- Tenanted by one of WA’s largest food wholesalers
- Future growth opportunities
This single-asset investment fund has purchased an industrial cold storage facility in Palmyra. Since 2008, the property has been tenanted by Sealanes, a key operator of the non-discretionary food and refrigerated logistics market in Perth, with stated turnover in excess of $300 million p.a.
The Fund is now fully subscribed.
This off-market purchase offers investors 7.5% distributions (paid monthly*), with potential for income and capital growth:
- Leased to Sealanes which is a wholly owned subsidiary of Superior Food Group – the third largest food service distribution company in Australia.
- Tenant is responsible for all outgoings including all repairs and maintenance relating to the refrigeration plant and equipment.
- Cold storage facilities are in low supply in the Perth metropolitan area, with increasing demand due to online food sales.
- Competition limited due to high replacement cost of a new facility.
Single asset purchase, buying bellow replacement cost.
3% rent review
Fixed rental growth with annual 3% rental reviews.
Rental yield with established tenant.
Average number of vehicles passing each day on Leach Hwy.
Significant land holding with a high underlying land value.
high profile location
The property is located within the Palmyra/O’Connor industrial area, approximately 13km south-west of the Perth Central Business District and only 4km east of Fremantle Port. More specifically, the site is located on the corner of Leach Highway and Absolon Street; a high-profile location that benefits from an average of 33,443 vehicles passing the site each day.
This is a strategic location for distribution, being on the main freight route to and from Fremantle Port, and providing easy access to all of Perth’s major arterial road networks including Stock Road, Kwinana Freeway and Roe Highway. There is also a dense residential population surrounding the site with approximately 590,000 people within a 15km radius.
Major occupiers in the area include D’Orsogna Small Goods, Gage Roads Brewing, Koala Self-Storage, Vinidex, and Transperth O’Connor Bus Depot
The property is leased entirely to Sealanes, a wholly owned subsidiary of Superior Food Services, a private equity backed national food service distributor and the third largest food service distribution business in Australia.
Sealanes has a large-scale operation in Western Australia, originally established in 1895 as a small grocery shop in Fremantle. Over more than 100 years, the company has grown through four generations of family and today it is the premier Food Service, Seafood Distribution and Ship Supply company in Western Australia. The sale to Superior Food Services in 2016 has defined a wider national reach, with over 20 branches and business premises across the country.
Superior Food Services has developed a sound reputation as a market leader in storage and distribution services, with major customers including Hungry Jacks, Domino’s, Subway, Guzman Y Gomez, Compass Group and Sodexo to name a few.
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