Day 1 Distribution
7.50% Net P.A.
Returns
5 Year Average Distribution
8.25% Net P.A.
Purchase Price
$16.7M
WALE (by income)
5 Yrs
Occupancy
100%
Industrial Warehouse
Sector
Industrial
Trust Term
7-Year Closed-Ended
This investment opportunity presents an attractive projected distribution, starting at 7.5% net per annum in Year 1, paid monthly, and targeting a 5-year average of 8.25% net per annum. It is fully occupied by United Group Limited (UGL), a Tier 1 engineering and services provider and subsidiary of Germany's largest construction company, Hochtief. Highly secure income through a 5-Year WALE (by income) and inflation-protected income growth with annual rent reviews exceeding market averages.

The industrial investment opportunity spans 30,900 sqm of land, featuring a substantial total building area of 8,490 sqm distributed across two large sheds. The purchase price is equivalent to $1,967 per sqm, reflecting a 7.52% passing yield, and is estimated to be 36% below replacement cost. The Paget market is tightly held and undersupplied, with minimal competing vacancies and limited new construction or development in progress.

The minimum investment amount for this opportunity is $100,000 for Wholesale investors.

Applications for investment will open shortly!

Why Mackay?

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Strategic Location

Mackay is located approximately 960 kilometres north of Brisbane and is Queensland’s fourth largest regional city being populated by 127,000 people. The region and benefits from a diverse range of economic drivers including Agriculture, Mining and Resources, Heath, Construction, Bio-futures, and Tourism.

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Strong Economy

With a Gross Regional Product of $3.9 billion (30% increase over 2022), the region contributes more GRP per capita to the Queensland Government than any other region in the state. Mackay also has one of the lowest residential vacancy rate in Queensland of 0.6% as at Q1 2024.

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Booming Resources Sector

The primary export from Mackay is Coking Coal which is essential to the production of steel and the spot price is currently sitting well above historic prices , the spot price as Q1 2024 was $306/tonne which is approximately three times the price in Q1 2020 ($110/tonne).

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Significant Investment

There are $45 billion of projects either proposed or underway within the Greater Whitsundays Region (Mackay, Isaac & Whitsundays). Within Mackay there are $1.5 billion in infrastructure projects, $1.8 billion in construction projects and $1.3 billion in utility projects currently underway.

Industrial Sector Overview

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Most key performance metrics such as vacancy and rents at a national level continue to outperform historical averages and this trend is expected to continue throughout 2024.

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The national vacancy rate for the industrial sector remains exceptionally low at just 1.0%, underscoring the high demand and limited supply within this market.

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Industrial weighted net face rental growth was reported to be 21.5% in CY2023, remaining approximately 6 times greater than the 10-year annual average of 3.0%.

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In response to heightened levels of occupier demand, CY 2023 produced the largest annual level of supply on record at 3.3 million square metres. However, this has done little to alleviate demand pressures, with over 80% of the supply completed being pre-committed.

Industrial Average Prime Yields - Connors Road

Location