Sale of Bannick Court provides syndicate members 210% return over 14 years
The sale of 27 Bannick Court, Canning Vale in June 2018 delivered investors in the syndicate an outstanding return on investment. Purchased by Mair Property Funds in 2004 for $1.8m, the property sold for an impressive $3.6m. In addition, the property has provided strong annual returns for investors, with annual distributions for the period averaging at 9.3% per annum. Overall, the total return paid to investors represents 210% over the original purchase.
Mair Property Funds established the Bannick Court Syndicate in December 2004 with the purchase of the 2,774m2 industrial warehouse at 27 Bannick Court, Canning Vale. The property occupies a prominent corner in the Canning Vale industrial zone with exposure to both Bannister Road and Baile Road. The asset has been income producing for the whole period of ownership.
The property had a long term lease to Stratco, who recently decided to consolidate their operations. At an early stage, the property was marketed for lease or sale. Through our market contacts, we were able to secure an offer from an owner-occupier willing to pay above the suggested valuation. The contract and terms were agreed prior to surrender of the lease, adding further income to the transaction.
In consultation with our network, we were alerted to a high demand by owner-occupiers who had been indicating strong interest in the small to medium end of the industrial sector where there was a perceived lack of quality stock.
The divestment was able to extract maximum value from the asset through the current demand by owner-occupiers. The strong location and branding opportunity underpinned the premium value achieved which provides the new owners the ability to have increased exposure to their business.
Mair Property Funds is a Western Australian owned company specialising in the acquisition and management of commercial property investment through unlisted property trusts. To find out more about our latest projects, visit the Mair Property Funds website.