Melbourne, 17 December 2019 – As part of its ongoing acquisition campaign, the MaxCap Industrial Opportunity Fund (MIOF) announced today that it had secured its third industrial asset. The acquired site is located in Brooklyn in Melbourne’s thriving inner west industrial core and is a strong strategic addition to the Fund’s other assets in Epping and Truganina.
MIOF was recently established via partnership between developer Time & Place and investment manager MaxCap Group in response to the unprecedented demand for small and medium sized industrial land lots located in established industrial precincts across the east coast of Australia.
MIOF Brooklyn Acquisition
The 13.6-hectare site is strongly aligned to the Fund’s investment guidelines and will further solidify the target 20% return for investors. Situated in the tightly held core industrial market of Brooklyn it benefits from excellent access to main arterial roads as well as being closely located to the future exit of the West Gate Tunnel.
The Fund has begun design and planning works to subdivide the site which is already zoned for industrial use and is currently used as for shipping container storage. The subdivided lots will cater to mid-sized industrial warehouse uses which are significantly undersupplied in the catchment area. Diminishing industrial supply in and around the Port of Melbourne is predicted to drive strong demand for inner city industrial land, in which the site is perfectly positioned.
Chris O’Keefe, director at Time & Place, said, “The Brooklyn site is a great example of an outstanding investment opportunity that was secured off-market through the agility of the Fund and the ability to work with the vendor to meet their needs and timing. We are well positioned to secure further opportunities in 2020, with a strong pipeline of potential acquisitions being investigated by the team.
Simon Hulett, Director of Real Estate Investment at MaxCap said, “Since its launch in July this year, the Fund has been very well received by a range of private and institutional investors due to the basic supply and demand fundamentals that underpin the investment strategy and the strong return profile in a low yielding environment. We have now raised close to $100 million and anticipate hitting our $150 million target early in 2020.”
The Fund is a four-year closed-ended vehicle targeting a strong net return to investors of greater than 20%. This is the Fund’s third acquisition, adding to its first two seed acquisitions in Epping and Truganina in Metropolitan Melbourne.
Cooper Site: a 9.78-hectare site in Epping, in Melbourne’s North. This was the first site secured through the Fund. The land was settled in June 2019 and construction is due to commence in early 2020.
Leakes Site: a 16.7 hectare site in Truganina, in Melbourne’s West. The second site was settled in August 2019. It is located within the Wyndham City council and planning approval is expected imminently. The development will comprise a mixture of lots targeting light industrial and warehouse use. Stage One that comprises 20 lots is currently for sale through JLL.
MaxCap Industrial Opportunities Fund at a glance:
Target size: Hard cap of $150 million
Fund strategy: acquisition, subdivision and development of industrial lands
Geography: Primarily in Melbourne, Sydney and Brisbane
Target number of investments c. 6-8 investments
Fund term: Four years fixed term + one year option to extend
Investment Period: Two years from the first closing date
Fund target return: 20%+ net IRR (net of all fees and expenses)