KM Property Funds receives strong demand for industrial fund

KM Property Funds has received strong demand for its latest fund, the Laverton North Property Fund.

The Fund is a single asset, unlisted property fund that will invest in an industrial cold storage facility at 5-17 Leslie Road and 6-10 Pipe Road, Laverton North, Melbourne VIC. The Fund enjoys some attractive metrics, including:

  • The property is fully leased to Austco Polar, which provides cold blasting, warehousing and cold storage facilities.
  • A new 15 year lease, with 10+10 year options.
  • Fixed annual rent increases of 3.5% p.a with a guarantee from the tenant's parent, Wingara AG Limited (ASX: WNR).
  • Targeted distributions of 8.25% p.a. (annualised) in FY20, increasing to 8.5% in FY21.
The Fund has received strong investor interest and has closed oversubscribed.