We are pleased to invite you to invest into our newly established fund, the QI Value Add Income Trust No 2.
The fund is being established to acquire two adjoining industrial assets in the northern Perth industrial precinct, combining for a sizeable 1.8 hectare landholding with substantial existing improvements. The assets are both leased to a wholly owned subsidiary of Seven Group Holdings (ASX: SVW), an ASX200 listed company.
The industrial property market in Perth has been performing strongly. The newly acquired assets will provide investors with a unique value add opportunity for both reversionary income growth and capital uplift by repositioning via lifting rents to market levels and/or redeveloping a portion of the site with a new 4,000 – 4,500sqm warehouse.
Quadrant Investments, via its related entities, has demonstrated its commitment to co-investing alongside our investors by committing to invest at least $2,000,000 in the fund.
With the fund seeking to raise a total of $5,400,000 to complete the new acquisition, only $3,400,000 remains available for investment. Settlement of the asset is due to take place in late October 2022.
Investment Highlights
- Target investor equity IRR of 11-12% p.a. over the term of the fund.
- Strong income distribution growth with substantial future market rent reversion.
- Acquisition heavily underpinned by land value with a very attractive purchase price reflecting $485/sqm of land area, inclusive of existing improvements.
- Strategic and highly desirable land holding of 1.84 hectares complete with over 400 metres of frontage over three streets, multiple access points and flexibility of being on two separate titles.
- Substantial yet under-developed existing improvements of over 5,800sqm across three buildings, plus canopy and substantial bitumen hardstand across the entire site. Existing improvements represent a very low site coverage of approx. 32%.
- Leased to a long standing tenant of close to 20-years, a wholly owned subsidiary of ASX200 company Seven Group Holdings (ASX: SVW); a company with a market cap in excess of $6 billion.
- Opportunity to secure significant market rent reversion from existing tenant with current passing rent approximately 39% below independently assessed market rent.
- Alternative or future repositioning opportunity to redevelop under-developed land title with a new 4,000 – 4,500sqm warehouse, adding further significant value to the landholding.
- Prime northern industrial locality with current vacancy of less than 0.1% for established warehouses of over 3,000sqm according to CBRE Research.
- The Trust is managed by Quadrant Investments, an established fund manager with over $90 million of funds under management post acquisition, and backed by the 109-year-old Richard Noble & Company.
- Commitment from entities related to Quadrant Investments to co-invest at least $2,000,000 in the fund.
- Open to wholesale and sophisticated investors – Register your interest for an allocation now with settlement due early November 2022.