Year 1 Distribution
8.50% Net P.A.
Returns
5-Year Average Distribution
9.00% Net P.A.
Tax Deferred Income
100% (Year 1 Estimate)
Trust Term
7-Year Closed-Ended
Industrial Warehouse
Sector
Logistics
Purchase Price
$10.6M
WALE (by income)
4.63 Yrs
Occupancy
100%
This investment offers a strong distribution starting at 8.50% net p.a. in Year 1, paid monthly, with an incremental increase to 9.50% net p.a. by Year 5. The property is fully leased to PFD Food Services, a subsidiary of ASX-listed Woolworths Group Ltd, until November 2029, with two 6-year extension options through to 2041, resulting in a weighted average lease expiry (WALE) of 4.63 years by income.

This off-market transaction results in a purchase yield of 8.70%, which compares favorably to recent comparable on-market transactions and the national industrial weighted average prime yield of 5.93%. According to our research, the 3,717 sqm transport and logistics property is the top cold storage facility in the region, situated in a tightly held, under-supplied market and sector with no competing vacancies or comparable relocation options. The opportunity is structured as a single-asset, closed-ended trust with an expected investment horizon of 5-7 years.

The minimum investment amount for this opportunity is $50,000 for Wholesale investors.

After a fantastic response from our investors, this opportunity is now closed, fully subscribed!

Investment Resources

Quantacast Episode 11

Property Walkthrough

Why Paget, Mackay?

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Strategic Location

Mackay is located approximately 960 kilometres north of Brisbane and is Queensland’s fourth largest regional city with a population of 127,000 people. The region benefits from a diverse range of economic drivers including agriculture, mining and resources, health, construction, bio-futures, and tourism.

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Strong Economy

With a Gross Regional Product (GRP) of $14.1 billion in 2024 (35% 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 rates in Queensland of 0.4% as at December 2024 and an unemployment rate of 3.70% as at June 2024.

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Booming Resources Sector

A primary export from the Mackay Region is coking coal where the spot price is currently sitting well above historic prices.

Coking coal is a critical component in steel production, and Australia is renowned for having some of the highest quality coking coal in the world. In 2023, 80.8% of the coal exports from Mackay and the Bowen Basin, shipped through the Dalrymple Bay and Hay Point terminals, were coking coal, while the remaining 19.2% consisted of thermal coal (North Queensland Bulk Ports Corporation).

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Significant Investment

There are $45 billion of projects either proposed or underway within the Greater Whitsundays Region (Mackay, Isaac and Whitsundays).

Within Mackay, over $4.6 billion of projects are underway and proposed including $1.8 billion in construction projects, $1.5 billion in infrastructure projects and $1.3 billion in utility projects(GW3 Regional Projects Development Register December 2024).

Industrial Market Overview

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National Industrial Market

The industrial investment market has been active with the Q3 2024 year-to-date sales volume at $5.3 billion, representing 84% of the total investment volumes for the previous year. The industrial market continues to perform well with the take up of industrial space forecast to increase as a result of further population growth and projected rate cuts which are expected to stimulate retail trade. Yields have stabilised at a national weighted average prime yield of 5.92% and are expected to trade within the current range until a rate cut occurs, which could lead to the start of the next compression cycle.

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Paget Industrial Market

In recent years, there has been a consistent rise in demand for high-quality industrial space, driven by strong activity in the mining and resources sectors. This demand has surpassed supply, leading to the construction of numerous investment-grade industrial properties with high economic rents, and are also driving an increase in market rents for existing facilities. As current occupiers seek new spaces to accommodate their expansion needs and new market entrants drive demand, the limited availability of suitable industrial properties, coupled with rising construction costs, is expected to continue pushing market rents upward.

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Cold Chain Market

The cold chain logistics process involves temperature monitoring at every stage of the supply chain process – from procurement, processing (loading/unloading), and storage to transportation and distribution to end users.
The cold storage sector is approximately 30% undersupplied in Australia with near zero vacancy. It is forecast that an additional 400,000 sqm will be required by 2028 to meet rising demand.
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Cold Storage Competition

Due to the uniqueness and limited supply of cold storage facilities in the market, occupiers of these facilities are typically either on long term leases with built in long-term options or owner occupiers. These users very rarely relocate due to their unique operational requirements, and therefore there are currently no suitable relocation options for the tenant.

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Location