KM Property Funds - Industrial No.1 Fund

Icon Calendar

Investment start date

June 2023 (6 year term)

Icon Diamond

Asset Class

Property Equity

Icon Dollar

Return

Targeting 10+% p.a. IRR

This investment provided an opportunity to purchase a good quality industrial asset in Melbourne’s core warehouse and manufacturing precinct, Dandenong South. The investment reflects core-plus risk-adjusted returns, with strong capital preservation given the quality of the building and high underlying land value.

Investors were provided with an opportunity that strategically utilised a short-term lease to capture the upside of rising commercial rents. Industrial assets have seen tremendous growth, as market rents for warehouses in Australia have seen significant increases in the past 24-months. Melbourne rents on average are up 23.4% year-on-year, and the market is experiencing sub 1% vacancy rates for the first time in history.