Jasper acquires $25.2M worth of Industrial properties across Auckland
Jasper, the technology-led commercial real estate fund manager, has successfully settled all assets in their latest Industrial Income Plus fund.
The Jasper Industrial Income Plus Fund is a private commercial real estate Fund that invests directly in industrial properties located in high growth areas, with resilient tenants and long-term leases. The Fund will deliver regular passive income and capital appreciation over time.
After receiving strong investor demand, the Fund was oversubscribed before the close date, with $15.2 million raised in new investor equity starting at a minimum investment of $25,000. Investors are forecast to receive a pre-tax cash return of 6 per cent per annum, with distributions paid monthly beginning in February 2021.
The Fund has acquired three industrial properties, located in Hobsonville, Papakura, and Mangere.
The first property, 42 Westpoint Drive, is well located in northwest Auckland's Hobsonville industrial precinct. The area is poised to see strong population growth, with a significant number of new homes planned for the Hobsonville suburb. The property was built in 2019 and is finished to a modern quality with high stud warehouse accommodation and fully fitted office and amenities across two tenancies.
Similarly, 63 Tidal Road and 67-69 Hunua Road are well located in leading Auckland industrial precincts with robust tenants and strong covenants. Tidal Road is a strategically located warehouse with fixed rental growth and an NZX listed tenant. The property is leased with six years remaining, and with built-in rental growth, it is expected to provide a stable cash flow in a growth location of Auckland. The tenant, Scott Technology NZ Limited (Scott Tech), was established in 1913 and has been listed on the NZX since 1997. Scott Tech specialises in the design and manufacture of automated production, robotics, and process machinery.
Hunua Road is a recently refurbished site, in an established industrial locality, with a well-known national tenant in Thomsons ITM. The property is expected to leverage future population growth and road infrastructure upgrades to underpin forecasted rental and capital appreciation. The property was built in the 1980s and includes six recently refurbished industrial buildings complemented by a substantial yard.
Mark Campbell, Chief Investment Officer at Jasper, said: "We have aggregated a portfolio of industrial properties with strong fundamentals, in a sector that has remained resilient throughout the COVID induced economic shocks and outperformed other commercial real estate sub-sectors. We have secured bank funding from ASB and will co-invest alongside our investors, so our money is in with theirs."
"We have steered away from a single asset with a single tenant. With multiple buildings, tenants, and locations, the Fund offers investors instant diversification from one simple investment, buoyed by strong market tailwinds in the industrial sector. It delivers an attractive risk-adjusted return."
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