Mair Property Funds settles acquisition of Wattle Grove Shopping Centre
The team at MPF is pleased to announce we have successfully completed the purchase of Wattle Grove Shopping Centre in WA for $16.3 million.
The newly-built centre, which was completed in 2016, was acquired into our unlisted property trust, MPF Retail Fund, which already holds the Castle Hill Village Shopping Centre in Murrumba Downs, Queensland.
We are extremely pleased with the results of the purchase and are confident that the Wattle Grove Shopping Centre will contribute to the ongoing strength of the fund, which has successfully paid distributions of 7.5% per annum to investors since its establishment.
This second asset forms an integral part of our wider acquisition strategy by providing the fund with diversity of location to help us better leverage growth opportunities within different markets across Australia.
With the Wattle Grove catchment forecast to grow by 3.6% in the next five years, we identified a key opportunity in the new shopping centre to take advantage of the growing population and high demand dynamics in the local area, with the site already benefiting from approximately 17,500 vehicles passing by per day.
The centre is also well poised to benefit from the completion of the highly anticipated Forrestfield rail link and the expansion of Perth’s airport, both of which will help drive further traffic to the area.
Coupled with its strong tenancy mix, we believe the continuing expansion of Wattle Grove will play a fundamental role in supporting the rental and capital growth of the asset.
The centre already has a strong anchor tenant in international food retailer ALDI, and is supported by a mix of service retail including medical, pharmacy, dental services, restaurants and fast food.
This diverse tenancy mix has had a positive impact on trade to date, and will continue to play a crucial role in our wider asset management strategy as we look to further enhance the performance of the fund through further tenancy additions.
This is something we have already successfully enforced at Castle Hill Shopping Centre in Queensland with the introduction of eastern food chain, Sushi Train.
Whilst the success of the investor raising for Wattle Grove Shopping Centre serves as a positive sign of confidence amongst our existing investors, the substantial number of new enquiries we received has also demonstrated rising confidence in property funds as a whole.
This is something we expect to see continue as more prospective buyers realise the potential benefits this investment option can bring in terms of portfolio diversification and access to higher-quality assets.
Mair Property Funds specialises in commercial property trusts and managed funds with 14 trusts under management that hold a range of commercial property assets valued at more than $220 million. If you would like to find out more out our latest opportunities, visit the Mair Property Funds website at www.mair.com.au